Syndicate Bank raises $100 m loan

Syndicate Bank has inked an agreement with Wachovia Bank NA to avail of a bilateral loan worth $100 million.

The bank proposed to draw the money in two-three tranches, in both dollar and yen, as required to grow its London branch's business, said C P Swarnkar, chairman and managing director, Syndicate Bank.

The CMD signed the agreement in Hong Kong on December 15. The loan is expected to help the bank become more aggressive in asset build-up on the domestic and foreign turf.

"We had a line of credit with Wachovia Bank and we decided to replenish it. We are witnessing a good growth in our London branch and wish to draw the money in parts to meet our funding requirements for expanding business there," Swarnkar said.

The London branch accounted for around 8 per cent of the bank's total business and was growing at 35 per cent a year, he added.

According to a statement issued by Syndicate Bank here today, this loan will enable it cut costs and the lead period generally associated with syndication.

Swarnkar said with its vast three-decade experience in the UK, the bank was poised for further forays into UK markets.

The bank is also considering expanding globally by entering strategic global financial centres such as Singapore, China and Hong Kong to service the needs of India Inc.

"Our commitment to Syndicate Bank and India is clearly demonstrated in this facility, and we are proud to contribute to this important initiative," said Charles Silverman, managing director and head of Wachovia's Indian sub-continent and southeast Asia business. Syndicate Bank is on a high growth trajectory with overseas presence in London.

The bank achieved a global business of Rs 1.17 lakh crore and a net profit of Rs 386 crore as on September 30, 2006. It targets a global business of Rs 1.27 lakh crore by March next year and Rs 2.50 lakh crore by 2011.

The NYSE-listed Wachovia Bank NA is one of the largest diversified financial services companies in the US and is a global leader in correspondent banking and trade services.