Standard Chartered Bank is in the process to reduce its exposure towards commercial real estate segment in India, says sources. The exercise is being conducted after the bank received a mandate from global regulators to cut exposure towards the underperforming sectors in the country by June 2014.
Also read: Piramal, Canada's CPPIB form $500mn realty investment fundSources say, the mandate requires consolidating the book size by re-looking at underperforming business activities. Standard Chartered Bank is understood to have been reaching out to borrowers through their relationship managers to close these credit limits.
Standard Chartered Bank’s current exposure towards the commercial properties in India is about Rs 1500 crore. In addition to real estate developers, they are also in talks with construction companies.
In response to CNBC-TV18’s queries, Standard Chartered Bank said that its business strategies are an internal matter. The bank does not intend to reduce its exposure or lending to corporate and it remains committed to growing its business and franchise in India, it further added.
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