Exec's transfer not under regulatory pressure: StanC

MUMBAI: Standard Chartered Bank has denied that a senior executive was moved out from its Indian unit due to regulatory pressure over lending irregularities. The statement comes at a time when there is a fresh buzz that the senior executive is on his way out in a bid to mollify regulators. In recent weeks banking circles have been rife with rumours that Standard Chartered was asked by the Reserve Bank of India to take action against the executive following certain irregularities in lending. Speculation centered around certain loans extended to Indian corporates overseas against local guarantees. On Wednesday, there was fresh speculation regarding the future role of Hemant Mishr, global markets head, within Standard Chartered. This was a couple of weeks after the bank had said that Mishr was stepping down to move to Singapore. "He (Mishr) has moved out of his role and is awaiting his next assignment which is yet to be identified," said sources who said Standard Chartered was "right-sizing" its markets team due multiple reasons, including the tightening regulatory environment. There has been talks about further exits from Standard Chartered 's markets business in the coming days. But Standard Chartered said the news "is totally baseless and completely untrue," said a spokesperson, who added that Mishr was very much with the bank and was taking up a new and bigger role in the bank. Last year, RBI had fined Standard Chartered Bank Rs 5 lakh for not submitting in time information on a foreign currency loan facility arranged by the bank for an offshore special purpose vehicle. Earlier this year, the bank was again caught on the wrong foot after some relationship managers sold rich customers corporate bonds with the promise that the bank would buy them back.  In a written statement, Neeraj Swaroop, regional CEO, India & South Asia, said: "We want to place on record that these rumours are motivated, totally unfounded and completely baseless and there has been no direction, either in writing or verbal, from any of the regulators."  that rumours have been doing the rounds involving Standard Chartered and some senior people moves which have been linked to regulatory pressure on the bank to effect these changes. Swaroop pointed out that the movement of people was a natural career progression. "In the first half of 2008, four members of the India management committee moved out of India into bigger roles in the group. It is the turn of their successors to move into bigger roles," the statement added. Standard Chartered had consolidated its prime position among foreign banks in India after rivals Citi and HSBC were affected by the global financial crisis. Last year, India became the largest profit centre for Standard Chartered with the bank generating over $1 billion of pre-tax profits from India.

TOI