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Stanchart Gets RBI Nod For IDR

The bank plans to raise approximately $500 million

Standard Chartered has got the Indian banking regulator’s (RBI) approval to issue Indian depositary Receipts (IDRs). However, the bank has not yet filed a prospectus – reported Reuters.

The bank, which gets nearly 19% of its group profits from India, is expected to take a decision on whether to launch the offer this fiscal year ending March 2010 or wait until the next year, reported the newspaper.

Neeraj Swaroop, CEO of the UK-based bank, said: “There is an approval, which has come from the RBI, but there are some conditions which we are in discussions.” When quizzed about the size of the planned IDR, he added: “It’s too early. We haven’t announced anything.” Earlier on Monday, the Economic Times newspaper reported the bank can raise a maximum of 5 percent of its capital under one IDR issue and cannot accept subscriptions from investors who borrow to invest in the offering.