StanChart to hire 2,500 people in 2010

StanChart to hire 2,500 people in 2010
PTI
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First Published: Wed, May 19 2010. 06 35 PM IST
Updated: Wed, May 19 2010. 06 35 PM IST
New Delhi: Global banking major Standard Chartered on Wednesday said it plans to increase its headcount in India by 2,500 people during the current year to 20,000.
The UK-based bank, which is looking at raising up to $750 million through issue of Indian Depository Receipts (IDR), currently employs 17,500 people in India.
“We hire people to meet our growth needs. In 2010, we will hire around 2,500 people for India business. The number was similar last year,” Standard Chartered’s India chief executive officer Neeraj Swaroop told reporters here.
The bank currently employs 75,000 people globally.
The bank is also planning to increase its branches network in the nation and is awaiting regulatory approval for the same.
“The number of branches that we can open are driven by the RBI license. We would be opening 100 new ATMs by August this year and take the total number to 350,” Swaroop said.
On the IDR issue, bank’s Group ED Jaspal Bindra said that every 10 IDRs will represent one share of Standard Chartered.
Retail investors, he added, would be given IDRs at a discount of 5% on issue price which will be decided later. The issue comprising 24 crore IDRs will open for public subscription on 25 May and close on 28 May.
“At the current market price we will be raising around Rs2,500 crore. The price will be decided based on Friday closing price of StanChart on London Stock Exchange,” Swaroop said.
Further, the bank is in talks to rope in anchor investors ahead of the IDR issue to increase retail investor confidence. Sources indicate that a host of Indian banks have evinced interest for the issue.
India accounted for 20% of StanChart’s profit before tax(PBT) in 2009 calender year. While the global PBT was $5.5 billion, India contributed $1.06 billion.
IDRs are derivative instruments that derive their value from the shares deposited with custodians. The foreign company will deposit shares with a custodian, who will issue depository receipts based on these shares.
Responding to questions on non-disclosure of ongoing litigations in the draft prospectus, Bindra said, “The litigations that we have not mentioned in the DRHP (draft red herring prospectus) are not material.
“We have a very big scale of operation. Sebi has decided that this is non-material and that is why we have not mentioned.. but that is known to the authorities,” he added.
On impact of Greece crisis on the bank, he said, StanChart did not have any exposure in sovereign debts in Europe and would not be impacted by the current developments.
StanChart is a conservative bank, Bindra said, adding “at no time during the global crisis did the bank take any money from any government or entered into debt arrangement.”
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First Published: Wed, May 19 2010. 06 35 PM IST
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