StanChart sees more mkt turmoil, invests in India

StanChart sees more mkt turmoil, invests in India
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First Published: Wed, Apr 16 2008. 04 53 PM IST
Updated: Wed, Apr 16 2008. 04 53 PM IST
Reuters
Kolkata: Standard Chartered Plc will put $250 million in its India operations, its group chief executive said on Wednesday, adding that he expected global market turmoil to continue for the next few months.
“I don’t know how long it will continue,” Peter Sands told reporters in response to a question on whether the worst of the global credit crisis had passed.
“But we expect a fair amount of turmoil and volatility, at least for the next few months. A lot of risk pricing and de-leveraging still needs to be done,” he said.
Standard Chartered, which makes three-quarters of its profits in Asia, will invest $250 million to expand its operations in India, taking its total capital base in the country to $1.9 billion, he said.
“This will bolster the bank’s capital adequacy to 10-11 percent, and support the growth of the wholesale and consumer banking services,” he said.
Foreign banks are beefing up their presence in India ahead of a planned review in 2009 of banking rules, which may ease some curbs in the tightly controlled market.
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First Published: Wed, Apr 16 2008. 04 53 PM IST