StanChart to float new NBFC

Standard Chartered Bank StanChart on Monday said that it will, within the next one month, float a non-banking financial company NBFC with an authorised capital of 50 million. The bank will pump in 7 million initially in the NBFC which will be named Standard Chartered Investments and Loans Ltd SCILL.

8220;The NBFC will be in the wholesale loan sector. It is being floated to access cheaper funds by way of corporate bonds,8221; said StanChart chief executive officer India-Region Christopher M. Low.

Low added that statutory approvals from the RBI and Sebi are expected soon.

StanChart plans to raise funds via the bond route at competitive rates and then lend the same. The NBFC route is expected to give the bank significant cost advantages as there will be no reserve requirements like cash reserve ratio or statutory liquidity ratio to be met. SCILL will also not be accepting any deposits from the public and will be used as a vehicle to tap the wholesale loan segment.