Standard Chartered Plc on Thursday said it is actively looking at listing of its shares in India through an issue of Indian Depository Receipts (IDRs). Discussions were on with the authorities for this, it said in its interim management statement for the third quarter of 2009.
The UK-based bank last month received approval from the Reserve Bank of India for the issue (See: StanChart gets RBI nod for listing; but 'no plans yet'), which would make Standard Chartered the first foreign entity to list in India, giving local investors the opportunity to invest in an overseas firm (See: Standard Chartered to raise $1.6 billion through share sale).
The bank's statement to the stock exchange said, "Standard Chartered is actively considering a listing of its shares in India via an issue of IDRs in order to grow brand presence and its business in this key market. We are working with the Indian authorities and a decision on timing will be taken in due course.''
Interestingly, the statement added, ''The group is also exploring the possibility of listing in China.'' Other large multi-national banks like HSBC are likely to go in for a China listing next year.
Standard Chartered is likely to go for the IDR issue next year, as it does not have much time to market the issue in this calendar year. India is the second largest market for the bank, and a listing in India is seen as mainly being a way to show its commitment to the Indian market, as it doesn't really need the funds.
Standard Chartered also said in its interim statement that the Asian economies are rebounding and remain resilient. "Their economic growth rates remain well above the rates of growth for markets in the West. This greater resilience is also attracting increased levels of competitive behaviour from both local and international banks," the bank said.