StanC to not add branches in India, consolidating them to be large format ones: CEO

Mumbai, Sep 25 (PTI) Standard Chartered, the largest foreign bank by physical footprint in India, will not add new branches beyond 100 outlets at present and is not looking at consolidating its footprint, a top official said on Thursday.

PD Singh, its chief executive for India and South Asia, said the lender is also looking to start dollar clearing operations at GIFT City from October 7.

Singh told reporters that the lender, which operates in the branch model rather than a wholly-owned subsidiary, does not see any difference from a regulatory perspective in operating in either of the two ways.

Pointing to the benefits of digital technologies, Singh said, "We will not need to add new branches to that extent because branches are points of servicing." Replying to a specific question on whether he sees a rationalisation of branches, as done by many of the foreign bank peers, he said, "I think we are consolidating our footprint to have large format branches and satisfy customer requirements in certain pockets." He added that the same has been done in Kolkata, where the bank opened its largest branch in the eastern region, and also in Chennai.

Singh declined to answer a specific question on the number of branches it will have over the medium term.

The bank aims to take the number of priority banking centres to 21 from the present seven this year, he said.

The bank aspires to serve multiple products and services to the same customer, and is focused on the 'Global Indian' segment, which has some links with foreign countries.

It is currently in the process of tuning its products, digitising them and bringing international capabilities, he said, adding that serving the wealth management opportunity is also a key focus area and will also hire people with impeccable values.

The bank, which employs 24,000 people in Chennai and Bengaluru to support its global operations, continues to grow its global capability centres, given the Indian talent, he said.

Singh said the bank is closely watching international headlines for an impact on the GCCs, he said, adding that even as these developments play out, it is seeing up to seven GCCs being added every month on the banking side.

Singh said the bank, which has over 8 per cent market share in the forex settlements, is witnessing a pick up in rupee invoicing and sees a larger adoption of trade settlements in the Middle East region in the local currency going ahead.

When asked specifically about whether it is serving sanctioned entities, Singh replied in the negative but added that it does bank oil companies without handling the problematic flows.

Meanwhile, Singh said the bank targets a 10 per cent loan growth in the corporate segment in FY26, but did not share the current book size. He said the bank sees opportunities on the projects and infrastructure side, where it is financing both local companies and multinationals.

It has financed six metro projects, a 5G ecosystem in the telecom sector, and EV bus operators serving cities, among others, he said.

There is no capital constraint for the bank to expand its book, he said, adding that no infusion is planned for the next five years, if things go according to plan. From a debt capital markets standpoint, Singh said it has up to four transactions in the pipeline, which can be completed this year.

The US tariffs will impact GDP growth by up to 0.7 per cent, but aspects like the GST, income tax cuts, and pay commission rollout can not just limit the impact but also reverse it, he said.

Countries and even domestic players seem to be stepping in to restrict the impact of tariffs, Singh said.

Private capex will pick up once companies find the consumption growth to be sustainable, he pointed out. PTI AA MR MR