Standard Chartered Plc plans to raise somewhere between $500 million and $750 million through its proposed Indian Depository Receipts(IDR) offering, which will be listed by the second quarter of the current calendar year. Earlier, the bank had talked of raising $1 billion through the IDR. Standard Chartered plans to file the Draft Red Herring Prospectus (DRHP) with the Securities & Exchange Board of India (Sebi) by the end of March.
?Our intention is to list the IDR issue by the second quarter, but everything depends on the prevalent market conditions,? said Neeraj Swaroop, regional chief executive (India & South Asia) of Standard Chartered Bank, adding that the latest results were required to file the DRHP.
Standard Chartered Plc?s IDR sale is to be managed by investment bankers including Goldman Sachs Group , UBS AG, Kotak Mahindra Capital , SBI Capital, Standard Chartered Capital, DSP Merrill Lynch and others.
The bank received approval from the Reserve Bank of India for its offering of an Indian Depository last year in October. Among the terms spelt out by the regulator, StanChart can raise a maximum 5% of its capital from a single IDR issuance. Standard Chartered has a presence across several countries, including Hong Kong, which is its largest market. India accounts for a fifth of the bank?s global profit before tax.
India profit rises 19% to $1.06 bn
Standard Chartered Bank reported a profit before tax of $1.06 billion as against $891 million, showing a rise of 19% in 2009. India contributes a fifth of the bank?s global profit before tax. The profit is up 42% excluding the proceeds of the bank?s asset management company which was sold to IDFC mutual fund.
At $4.8 billion, the bank?s current and savings account (CASA) is up 25% and constitutes 43% of the total deposits in 2009.
Meanwhile, the bank?s loan and other impairments have gone up by 16% to $182 million in 2009 from $157 million. Overall, the loan impairments for the group as a whole have also gone up from $2.08 billion to $1.7 billion, during the same period, showing a growth of 16%.
The bank?s loans and advances are up by 15% to $9 billion, while deposits have risen by 14% to $11 billion during the reporting period.
Neeraj Swaroop, regional chief executive officer (CEO), India and South Asia at Standard Chartered Bank, said the bank has witnessed a strong growth in the wholesale and consumer segments.
?We are seeing growth in transaction banking, markets and lending to corporate. We are also seeing growth in other segments mortgage lending, SME and the private banking business,? said Swaroop.