CALCUTTA, Feb 5: The Standard Chartered Bank is completing the process of linking its Indian operations to its hubs in Hong Kong and Singapore by the middle of 1998. This is part of a global exercise by the bank to centralise its operations in India as well as in South Asia and other countries.According to officials of the bank, its eight Indian branches will be converted to retail "outlets" of the central processing system in Singapore and Hong Kong. At present, each branch files its own returns. After the centralising process is over only a single set of returns will be filed for the entire Indian operations. This restructuring by the bank will also involve downsizing of its personnel.
Martin Fish, chief executive officer of the bank, told this paper in a faxed reply that the process of centralising the operations have already commenced: "The process has already been completed for the Mumbai branches and Delhi should convert to the new system in mid-February. Thereafter, we expect to complete Chennaiand Calcutta by the middle of 1998." The entire project entails an investment of Rs 125 crore.Justifying the move, Fish said: "Standard Chartered is in the middle of an ambitious programme to improve its technology in India. This involves bringing new systems to India which are in use in Asia, connecting the branch network and linking it to mainframe computers in Singapore."
A brief look at the financial ratios of the bank for the last financial year (1996-97) and a comparison with the average ratios of the foreign banks clearly show the need for the bank to streamline its operations. For instance, StanChart's interest income as a percentage of total assets for 1996-97 works out to 9.78 per cent (as computed by the Reserve Bank of India) against the industry average of 11.07 per cent. Operating profit as a percentage of working funds is 1.68 per cent against an average of 3.58 for foreign banks.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
