StanChart open to local buyouts

Standard Chartered Bank (SCB) is open to acquisitions in India. "We are looking at organic and inorganic growth in India," said Mike Rees, CEO wholesale bank, Standard Chartered Bank Plc. He also mentioned the importance of privatising the banking sector to deliver shareholder value.

Rees said, "Privatisation will help deliver shareholder returns and meet the needs and aspirations of shareholders. This will help make banks stronger as it improves profitability and service levels."

"More than 70 per cent of the banking sector is still with the public sector. In other countries we have seen rapid change through consolidation, and in India too, we expect to be a part of this inevitable consolidation," Rees said.

Drawing the parallels with Singapore, Rees said the banking sector has today consolidated from 14 banks to six banks as domestic institutions see the need to compete with foreign banks.

SCB is also keen to acquire other banks' asset portfolios. SCB chief executive officer India region A Christopher M Low added: "We have expanded our distribution and would look at opportunities as they arise with the change in regulations."

On the expansion drive, Low said: "We want to go to 40 cities and this is still the tip of the iceberg". He added that the expansion will reduce interest rates and improve margins. "We need to revisit opportunities going forward," he added.

SCB made a return of Rs 848 crore last year but hopes to increase this in the medium and long term through better opportunities, Low added.

SCB is investing significant amounts in India, said Rees, adding that India and China are seen to be the fastest growing economies and the key growth engines for the banking sector. "As these economies grow, banking needs to increase," Rees said.