Standard Chartered Plc. is in final talks to buy a 49
per cent stake in Indian brokerage UTI Securities, a deal
that would help the banking conglomerate expand its wealth
management services for customers in India, the Financial
transaction, expected to cost Rs140 crore ($35 million),
marks Standard Chartered''s return to retail stock broking
in Asia after more than a decade, the report said.
UTI has about 40 branches and Rs70 crore in annual revenue.
said G. Narayanan, managing director at Securities Trading
Corp. of India Ltd., UTI''s parent, confirmed the talks
were advanced, but declined to discuss the value of the
Chartered''s existing wealth management business, which
caters to individuals with investable assets of below
$1 million, is growing strongly. This business contributed
nearly $2 billion in revenue last year, or 40 per cent
of consumer banking business.
new private banking business, headquartered in Singapore,
caters to customers with $1 million to $50 million.
part of its expansion, Standard Chartered would hire 200
to 300 private bankers worldwide over the next two to
three years, bringing the total to between 350 and 450
by the year 2010.
Chartered and other banks are increasingly focusing on
the private banking business because of the rapid rise
in the number
of wealthy individuals, particularly in Asia. The sector
is currently dominated by big players, including UBS,
Citigroup, and HSBC.