Standard Chartered Bank had approached the Competition Commission regarding its proposed acquisition of certain loan portfolios of Barclays in India
New Delhi: Fair trade regulator Competition Commission of India (CCI) has approved Standard Chartered Bank's proposed buyout of certain loan assets of Barclays, saying the deal would not adversely impact competition, reports PTI.
Standard Chartered Bank, India had approached the Competition Commission regarding its proposed acquisition of certain loan portfolios of Barclays.
The entity is to buyout the "performing loan portfolios of personal instalment loans, loans against property and home loan finance of Barclays Bank Plc, India branch and the performing loan portfolios of personal instalment loans and loans against property of Barclays Investments and Loans (India) Ltd (BILIL)".
Approving the proposal, the Commission in its order dated 21st November, said it is of the opinion that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".
Besides, Standard Chartered Bank, Barclays India and BILIL, there are a large number of other players engaged in the business of providing personal loans, inlcuding personal instalment loans, loan against property and home loan finance, the Commission said.
"In view of the foregoing, it is observed that the proposed combination is not likely to raise any adverse competition concern," it said.
For the deal, Standard Chartered Bank has entered into separate framework deeds with Barclays India and BILIL.
The notice, seeking approval, was submitted to the Commission on 5th November.
As per the notice, Barclays India is exiting the line of business pertaining to personal instalment loans, loans against property and home loan finance while BILIL is existing operations related to personal instalment loans and loans against property.