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StanChart's new Indian chief eyes emerging markets for consolidation

Murali Krishnan in London

There's a long list of financial reporters and media personnel compiled by the press office of Standard Chartered Bank, waiting for an interview with the new chief executive of the banking group. The list of Asian journalists is even longer.

"We have never been besieged by so many calls from the press," remarks the information officer. "I cannot promise you a date, we will be in touch."

Rana Talwar, 50, is undoubtedly pleased. Not only is he the first Indian to head the London-based international banking group, he is the first Indian to head a FTSE 100 company.

"It is indeed a privilege to be on the top position," said Talwar, when the announcement was made. He takes over on October 1.

Talwar, who started his banking career almost 30 years ago, is an economics graduate of St Stephen's College in New Delhi. He currently heads Standard Chartered's operations in North America, Europe, Africa, West and South Asia. Earlier, his rise through the Citicorp group has been a glorious one.

Until 1995, for 13 years, Talwar developed Citicorp's consumer business across Asia-Pacific, West Asia and east Europe. He later headed its retail banking in the US before becoming a member of Citibank's inner circle. He left last year to join StanChart in London.

According to insiders, Talwar joins a small but growing band of Indians at the top of multinationals: Jim Wadia at Arthur Anderson, Rajat Gupta at McKinsey, Girish Reddy of Goldman Saachs and until his abrupt resignation in May as chief executive of ING Barings, Arjun Mathrani.

It is widely believed in banking circles that Talwar, a respected but largely unknown figure in London, was a marvellous catch. Two factors weighed heavily. His breadth of experience -- in treasury, consumer and corporate banking -- and his intricate knowledge of retail banking in Asia, where StanChart has been disproportionately exposed.

Talwar is confident that he can develop the Standard Chartered franchise. "I believe we can do more to build and grow the bank and make it as a major force in emerging markets."

The announcement certainly came as a surprise as many were lobbying for the top post. It also caught the London stock market on the hop, prompting speculation that the bank was keen to end the uncertainty and positioning among its officers for the key position.

Another signal sent out by Talwar's appointment is that StanChart, which has been the subject of bid talk, is firm to guard its independence. Talwar firmly maintains that Standard Chartered Bank will be independent and will not get into merger discussions. "And we will resist bids," he says.

With credentials that are perfect, Talwar is poised to consolidate the position of the 148-year-old bank which reported pre-tax profits of £870 million for the year to December.

All eyes will also be focussed on Talwar as he is the first Asian to head a multi-national bank and the bank's competitors will, perhaps, keep a closer eye on his moves.

Talwar looks forward to the challenges, confident that his professional competence will stand him and the bank well.