Stanchart makes Chennai as global processing hub

By Our Special Correspondent

CHENNAI, SEPT. 13. Even as it has made Chennai one of the two global processing hubs where most of its back office functions are to be moved over a period, Standard Chartered Plc has drawn up an elaborate expansion plan which will see the local centre drive the business volume for the bank substantially.

The Grindlays garden here, which had come under the fold of Standard Chartered following global-level acquisition, is being expanded - both vertically and horizontally - at an unspecified investment to handle the increased business volume arising out of the decision to move to Chennai all back office functions concerning business related to the West.

Sir Patrick Gillam, Chairman, indicated in an interaction with select presspersons here that the Chennai hub, now employing 400 people, would house 1400 in about 18 months. He said the Chennai hub had already begun processing all African data as well trade data related to Singapore. Quizzed as to why Chennai was picked, Sir Gillam said the decision was taken after a broad survey around the world. He cited cost consideration, skill availability and inexpensive salary levels as primary reasons that forced Stanchart to zero in on Chennai. Besides Chennai, Kuala Lumpur will be the other global process hub of the bank. Back office functions related to Asia pacific regions would be shifted to the Malaysian city, he pointed out. To a question, the Chairman said the bank had invested over a billion dollar into India in the last couple of years.

Sir Gillam made it clear that Stanchart would be focusing on emerging markets only. ``We don't want to compete in OCED countries,'' he said and added, ``we can get best money for our shareholders in the emerging markets.''

He ranked Honghkong, Singapre, Malaysia and India in the order which fetched `most money' for the bank. He expressed optimism that in a year or so, India would overtake Malaysia and fetch more income for the bank. Indian operations, he said, had been contributing to 10-15 per cent of the global business.

Asked how re-insurance rates would move in the wake of terrorists attack on the U.S., Sir Gillam merely said, ``I can't comment on it. It is too early to comment.'' In his view, any assessment of the loss to insurance companies would depend on how the Bush regime finally treat the entire Tuesday's extraordinary events. Nevertheless, he agreed that the re-insurance rates ``are bound to be firm''.

Asked as to what the bank had learnt from the stock scam of the early 1990s in India, he said ``we learnt about compliance and control of business.''

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Section  : Business
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