Standard Chartered India: Deeper Ties Over More Customers

Standard Chartered Bank, with over 165 years in India, is recalibrating its retail strategy to concentrate on customers with deeper banking relationships. This advisory-led approach emphasizes cross-border banking and bespoke services, moving away from the highly competitive mass retail segment. The transformation, expected to be largely complete within eight months, will keep wealth and affluent banking as core focuses.

The bank is not actively pursuing standalone credit card or personal loan customers, prioritizing relevance and deepening connections with its existing 1.3 million clientele. Opportunities are identified in serving affluent and wealth segments, alongside expanding the SME franchise with a goal of increasing market share.

On the corporate side, project finance, particularly in renewables and EV infrastructure, remains a priority, accounting for 10-12% of the loan book. Encouraged by the 'Make in India' initiative and global supply chain shifts, the bank observes a revival in manufacturing and private capital expenditure, reflected in a corporate pipeline that is 15% larger than the previous year.

Standard Chartered is also actively facilitating foreign capital inflows into India, especially through FCNR(B) deposits, with interest rates offered between 5.5-6% for three- to five-year terms. The bank anticipates significant opportunities, potentially in the billions of dollars, from both deposit flows and Indian banks raising foreign currency. Recent measures by the RBI are seen as encouraging for increasing foreign currency inflows.

Regarding its GIFT City operations, Standard Chartered, as the first foreign bank to establish a presence there, has been involved in various landmark transactions. The bank is investing in new technologies, including AI for productivity and digital asset services within regulatory frameworks, aiming to enhance operational efficiency and client services.