Financial Times

New identity for Standard Chartered Bank

By Akhry Ameer
Standard Chartered Bank (SCB) has changed its corporate identity and is expected to emerge as a new, strengthened player in the banking industry with the completion of its merger of the business of Standard Chartered Grindlays. SCB acquired the Middle East and South Asian Grindlays operations from the ANZ Banking Group in July 2000 and has been operating as a separate entity under the Standard Chartered Group.

“We have now become one entity as of 1st January 2003 and will operate under a single legal entity with a new corporate identity. All businesses of Standard Chartered Grindlays have been gradually transferred after completing all required legal formalities and aligning the systems of the bank. We have now given up the licence of Standard Chartered Grindlays,” said Wasim Saifi, Chief Executive Officer of SCB, Sri Lanka on the transformation.

The consolidation of the two businesses is expected to help the bank compete better in the market with greater strength. It also ensures SCB is amongst the two largest foreign banks with a balance sheet of Rs. 39 billion. Going forward the bank has plans to expand its business this year. “We will be looking at what can be done to expand.

Customers will see this through the product offerings. The significant value that the Grindlays franchise has brought to the Standard Chartered Banking Group was clearly reflected in our annual results for the year 2001-2002 and Sri Lanka is now a key market for growth within the Group,” added Saifi.

When the Grindlays operations were acquired in 2000, SCB had three branches while Grindlays had eight branches.

These have been consolidated and SCB now has a total of eight branches in the island. SCB also closed the Kandy branch under Grindlays operations which was the only branch outside the Greater Colombo area. Commenting on this, Saifi said, “Kandy was a very small front of our business as it was less than 1% of the balance sheet. Being a foreign bank we have to exercise strict controls.”

Responding to the need to reach beyond Colombo, the bank head was of the view that there are adequate opportunities in the greater Colombo area and that the focus the would remain at least till 2004. “If the economic activity picks up we will look at opportunities at that stage,” he added.

SCB's competition and market focus is also varied according to product types. The bank benchmarks its competition with other banks that have a similar footprint, and service providers who have excelled in specific areas such as McDonalds at its counters.

In moving forward, the bank plans to compete for a greater share in the growing consumer business. “As the country develops and the GDP numbers grow our corporate customers will be looking at growth and we hope to serve them better with new products and services,” he added. Commenting on the industry he said, “As the impact of peace is felt on the economy the business growth will reach the banking sector. Currently the banking environment is fragmented and highly competitive. I feel there will be consolidation of banks in the next three to five years. Fragmentation doesn't give benefits. But when consolidated the customers will benefit.”

Standard Chartered is the world's leading emerging markets bank.

It employs 28,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, United Kingdom and the Americas. In Sri Lanka, the bank serves consumer and wholesale banking customers through a network of eight branches and 12 ATMs across Colombo.

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