London-based lender Standard Chartered Bank will trim its operations in unsecured retail and corporate businesses in India, as the bank embarks on restructuring its global operations that will result in 15,000 employees losing jobs worldwide.
"Adoption of a new risk tolerance framework will reduce single-name concentrations and unsecured retail and corporate business, coupled with more active reduction in our China, India and commodities exposures," Business Standard quoted Standard Chartered as saying.
Standard Chartered, the biggest foreign lender in India in terms of number of branches, has been facing problems due to an economic slowdown in emerging markets.
However, the number of job cuts in India resulting from its restructuring measures is yet to be known.
In terms of corporate lending, the bank has the highest exposure to the infrastructure sector at Rs 9,858 crore following by metals and engineering sectors at Rs 7,255 crore and Rs 6,403 core, respectively.
According to the bank's CEO Bill Winters, the global restructuring is an "aggressive and decisive set of actions" to revive it.
The bank reported an operating loss of $139 million for the July-September quarter on the back of increasing regulatory costs and a rise in bad loans in India. Its revenue saw an 18% decline in the quarter.
The lender is expected to cut employees at the branch level in India and close unprofitable branches, according to sources close to the development. Currently, it has 100 branches across the country.
There has been no aggressive hiring by the bank in the past few quarters. Earlier this year, the lender had shut down its operations in institutional cash equities, equity research and equity capital market businesses in India.
