Stanchart looking for a buyer for Indian mutual fund business

Mumbai: Standard Chartered Bank is looking for fresh buyers for its mutual fund business in India after a proposed deal with UBS AG fell off as the Reserve Bank refused permission for the sale.

Stanchart hopes to complete the deal by March, reports citing sources said.

Reports also said Barclays, Shinsei Bank and Credit Agricole along with some private equity players are in the running to acquire the business.

UBS had agreed to buy the British Bank's mutual fund business in India for about $118 million through acquisition of 100 per cent of Standard Chartered Asset Management Co Pvt Ltd and Standard Chartered Trustee Pvt Ltd.

Standard Chartered MF has assets under management of about Rs13,100 crore ($3.3 billion), or nearly three per cent of the market.

Asia-focused Standard Chartered has leapfrogged rivals to rank as Britain's fourth biggest listed bank as it outperforms peers struggling amid deepening gloom about domestic banking. Standard Chartered shares have moved around 18 pounds this week to value the bank at $50 billion, after a 24 per cent rally by its shares last year.

The bank has doubled in size in the last four years and up until this year it ranked well below the Big Five that dominate the banking scene.

Standard Chartered makes three-quarters of its profits in Asia and has reaped the benefit of the region's rapid recent growth. It has also invested heavily in organic expansion through acquisitions in South Korea, Pakistan, Taiwan and elsewhere.