Stanchart to take over Sumitomo Mitsui arm

Standard Chartered Bank India is understood to be taking over the operations of Japanese Sumitomo Mitsui Banking Corporation in India. Though a Standard Chartered spokesperson declined to comment on the issue, he did not deny the development.

According to banking sources, Standard Chartered proposes to set up a Japan desk in its Indian operations to maintain the Japanese bank's contacts and continue with corporate clientele services. SMBC has limited operations in India and is confined to two branches, Delhi and Mumbai.

For the year ended March 31, 2003, SMBC registered a net loss of Rs 45.5 crore (Rs 455 million). Its major operations include trade finance, loan

syndication and cash management.

Incidentally, Sumitomo Mitsui Financial Group Inc, Japan's third-largest lender by assets, extended its $29 billion stock offer to buy UFJ Holdings to create the world's biggest bank.

The bank is a part of the Sumitomo Mitsui financial group, which is the holding company for three other companies: Sumitomo Mitsui Card Company Limited, SMBC Leasing Company Limited and The Japan Research Institute Limited.

In 2002, Standard Chartered merged Grindlays, with itself, and formed the largest foreign bank in India in terms of profitability and network. It was part of Stanchart's acquisition of Grindlays operations in West Asia and South Asia.