StanChart had taken over ANZ operations in the Middle-East and South Asia and the associated private banking business of Grindlays for $1.34 billion in 2000. This amount also included a goodwill amount of $700 million. Incidentally, when the operations were sold, ANZ Grindlays had 29 branches in 15 cities in India while StanChart had 19 branches in eight cities.
According to Economic Times, during the time of the takeover, StanChart had 57 branches in nine countries while Grindlays had a larger branch network with 116 branches in 13 countries. The bank's in-principle approval for a branch has come with some riders from RBI. The bank's application for a branch in India had been pending for the past couple of years.
Sources said that, to avoid a 'revolving door' situation, firmer commitments have been sought from foreign banks seeking a license for India. A few years ago, Dresdner Bank, which closed operations in the start of the decade, re-entered the country in 2008.
An ANZ spokeswoman said, "We regard India as one of two economies, along with China, that will drive not only Asia, but the world economy this century. Initially, under our foreign bank licence, we will provide banking services to high-end corporate customers and financial institutions, but over time, as we grow our branch network, we will start to build a retail and wealth proposition for affluent customers in key cities. As a result of ANZ’s connection with Grindlays, ANZ retains very strong brand recognition in India, which provides a good base for rebuilding our business in this important market."
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