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StanChart to form its S Asian region
1/15/2005
MUMBAI, Jan 14: Standard Chartered is forming a new South Asia region within the bank, comprising India, Nepal, Sri Lanka, Bangladesh and Afghanistan, effective March 1, an Internet report said.
Jaspal Bindra, who is currently global head of client relationships in wholesale banking, will head the expanded South Asia region, said a press release.
The dynamic economies of South Asia provide Standard Chartered excellent opportunities for growth.
Standard Chartered Bank is the largest international bank in each of these markets and is ideally poised to capture a large share of the trade flows in the region, said the release.
The grouping of these countries in South Asia into one region reflects not only the geographic proximity of the markets but also underlines the shared culture and business synergies that they have with each other, it said..
Under the new governance model, the Chief Executive Officers (CEOs) of India, Nepal, Sri Lanka, Bangladesh and Afghanistan will report to Bindra, who, in turn, will report to Kai Nargolwala.
However, there will be no material change in the day-to-day operations of the businesses in the countries, the release said
The region comprising India, Nepal, Sri Lanka, Bangladesh and Afghanistan has been designed as the Bank's South Asian region for operations to begin from April one, 2005.
According to banking sources, the appointment of Bindra is aimed at helping the bank consolidate in the region. Before moving to Singapore, Bindra was the CEO (India region), StanChart, and was responsible for the integration of Grindlays business in India and Nepal.
Bank officials had earlier said that it would look at maintaining its position as number one in India. The bank, like other major foreign banks, has been scouting in the country for an acquisition. These banks are awaiting second draft guidelines of the reserve Bank of India (RBI) on private sector bank ownership.
The move to appoint Bindra comes a few days after StanChart agreed to buy Korea First Bank for $3.3bn in cash, its biggest acquisition till date. Currently, the bank's India region also encompasses Nepal.
The new South Asia region contributes close to 16 per cent of the bank's profits, of which India contributes the bulk of it at 13 per cent.
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