Is the Media Report on RBI Scrutiny of Standard Chartered Bank Unverified and Malicious?

New Delhi, June 18 (NationPress) Standard Chartered Bank has firmly denied a report from Bloomberg, asserting that the article's claims are unverified and malicious.

The report suggested that Standard Chartered is under regulatory scrutiny by the Reserve Bank of India (RBI) due to alleged shortcomings in its derivatives sales. It indicated that the central bank expressed concerns over supposed sales of target redemption forwards to small and medium-sized enterprises, which could lead to significant losses.

In a new statement to IANS, Standard Chartered Bank emphasized, “In light of the news published by Bloomberg and circulated by various media outlets, we firmly reject the article's contents as unverified, source-based, and malicious.”

“There are particularly speculative and inaccurate claims concerning lapses in the Bank’s derivatives sale processes and risk controls. The Bank provides structured products exclusively to eligible client segments,” the statement continued.

Standard Chartered Bank affirmed that it “upholds the highest standards of compliance, transparency, and customer-centric values, which form the foundation of our operations.”

Earlier, a spokesperson from Standard Chartered had informed IANS that the RBI conducts annual inspections of banks.

“While we prefer not to comment on specific observations, any findings are typically addressed as part of the standard process,” the spokesperson noted.

In February of this year, Standard Chartered appointed P.D. Singh as its CEO for India and South Asia, effective April 1, succeeding Zarin Daruwala.

In April, the bank relocated to larger offices at the Gujarat International Finance Tec-City (GIFT City), demonstrating its long-term commitment to India’s leading international financial services hub.

“Aligned with the government's vision of Viksit Bharat, GIFT City is swiftly becoming a vital gateway for international investors and institutions eager to engage with India’s economic growth narrative,” Singh remarked.

Over the past few years, Standard Chartered Bank has significantly invested in building capabilities, including its product suite, talent, and technology across its corporate and institutional banking divisions.

The bank was the first foreign institution to initiate operations at GIFT IFSC and has been instrumental in its development. It currently offers the broadest range of products to corporate and institutional clients in areas such as lending, trade finance, cash management, and financial markets.

In the last two years, the funded assets at the bank's GIFT City have surged by over 150%, achieving market leadership in the derivatives sector.

Having operated in India for over 165 years, Standard Chartered is one of the oldest foreign banks in the country, boasting a network of 100 branches across 42 cities.