Media report on RBI scrutiny unverified and malicious: Standard Chartered Bank (Lead)

New Delhi, June 18 (IANS) Standard Chartered Bank on Wednesday categorically refuted a news article by Bloomberg, saying the the contents of the article are unverified and malicious. 

The media report had claimed that Standard Chartered is facing an RBI regulatory scrutiny in India over alleged lapses in derivatives sales. According to the report, the central bank raised concerns following alleged sales by the lender to small and medium-sized enterprises of target redemption forwards, "a product that can cause significant losses".

In a fresh statement to IANS, Standard Chartered Bank said that “with reference to the news published by Bloomberg and picked up by certain sections of the media, we categorically refute the contents of the article that are unverified, ‘source’ based and malicious.”

“Specifically, there are speculative and inaccurate statements around lapses in Bank’s derivatives sale processes and risk controls. The Bank offers structured products to only eligible client segments,” the lender further said.

Standard Chartered Bank stated it “maintains the highest level of compliance, transparency and customer centricity which are the cornerstones of the Bank”.

In an earlier statement, a Standard Chartered spokesperson had told IANS that the Reserve Bank conducts an annual inspection of banks.

"While we don’t want to comment on specifics, observations, if any, are highlighted and addressed as part of the normal process," the spokesperson added.

In February this year, Standard Chartered Bank appointed P.D. Singh as its chief executive officer (CEO) for India and South Asia, effective from April 1. Singh succeeded Zarin Daruwala.

In April, Standard Chartered Bank shifted to larger office premises at Gujarat International Finance Tec-City (GIFT) City, reinforcing its long-term commitment to India's premier international financial services hub.

"In line with the government's vision of Viksit Bharat, GIFT City is rapidly emerging as a critical gateway for international investors and institutions, looking to be a part of India's economic growth story,” said Singh.

Over the last couple of years, Standard Chartered Bank has invested significantly in capability building, involving product suite, talent and technology, across its corporate and institutional banking business.

Standard Chartered Bank is the first foreign bank to commence operations at GIFT IFSC and has played a pivotal role in its development. It currently offers the widest product bouquet to corporate and institutional clients across lending, trade finance, cash management, and financial markets.

Over the last two years, the funded assets at the Bank's GIFT City have grown by over 150 per cent while attaining market leadership in the derivative business.

Standard Chartered Bank has been operating in India with a continuous presence of over 165 years, making it one of the oldest foreign banks in the country. The bank has a network of 100 branches across 42 cities.