The Hindu : Business : Stanchart to buy Sumitomo Mitsui Bank's India operations

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Tuesday, Sep 28, 2004

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Business

Stanchart to buy Sumitomo Mitsui Bank's India operations

MUMBAI, SEPT. 27. Standard Chartered Bank (SCB) will acquire Sumitomo Mitsui Banking Corporation's (SMBC) Indian operations, consisting of two branches subject to regulatory approvals. An agreement has been signed to this effect and an application submitted to the Reserve Bank of India for its approval, the two banks said in a joint statement here today.

The transaction, for an undisclosed sum, is expected to be completed by March next and is subject to provisions of the Banking Regulation Act, 1949, whereby the Japanese bank, with two branches in Delhi and Mumbai, will transfer its assets and liabilities in India to Standard Chartered Bank, the statement said.

While the process of integration is expected to take several months, both organisations are focussing efforts on ensuring that all stakeholders of SMBC in India would experience a smooth transition, it added.

The SCB CEO, India region, Chris Low, said the acquisition and establishment of the Japan Desk provided a unique solution for an important institutional client. This would further strengthen the corporate banking franchise of the bank in the country, especially in terms of important Japanese corporate customers, and was in line with our growth strategy, Mr. Low added. SMBC India CEO, Kenji Knwayama, said as part of the bank's resource-optimisation strategy, it had chosen to service their customers in India by entering into a strategic relationship rather than having branch operations in the country. — PTI

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