StanChart's India customers need not worry, say analysts
Customers of Standard Chartered Bank in India need not worry about their savings, as Indian operations of the UK headquartered bank are well-regulated and remain intact, say analysts.india Updated: Aug 08, 2012 21:33 IST
Customers of Standard Chartered Bank in India need not worry about their savings, as Indian operations of the UK headquartered bank are well-regulated and remain intact, say analysts.
However, the bank may find difficulty in mobilising new customers after suffering a serious loss of image, they felt.
"Indian depositors need not to worry because there is no financial crisis for the bank, it is a case of violation of some norms and it may have to pay penalty if allegations are proven right," said Kajal Gandhi, banking analyst, ICICIdirect.com, the retail broking arm of ICICI Securities.
"So far the bank adheres to RBI norms. The Indian arm of the bank will continue to work smoothly," she said.
In terms of branch expansion, the bank may find some resistance from the RBI because the central bank will take into account all such incidents. The RBI refused to offer comments on the controversy.
"The RBI does not comment on specific cases," said a spokesperson of the RBI.
"The US controversy will not lead to any changes in its capital adequacy and other norms prescribed by the RBI for its Indian arm," said Dinesh Shukla, banking analyst, Sharekhan.
"This will dent the bank's image because the case is of violation of norms and the bank may find it difficult to acquire new customers," he said.
First Published: Aug 08, 2012 21:08 IST