Standard Chartered's Unraveling India Bet Means More Pain Ahead - Bloomberg Business:
"When India’s billionaire Ruia brothers went looking for loans to expand their steel-to-power empire around the turn of the decade, Standard Chartered Plc stepped up.
Some five years later, the $2.5 billion Standard Chartered lent to the Ruias’ Essar conglomerate is among debts the London-based bank isn’t certain it’ll recover, according to people with knowledge of the matter. About $5 billion of advances Standard Chartered made to Indian borrowers have been internally classified as at risk of defaulting, in addition to the $1 billion of onshore loans that have already become non-performing in India, the people said.
India, Standard Chartered’s biggest profit contributor as recently as 2010, has become a major headache for Chief Executive Officer Bill Winters, who took over from Peter Sands in June. As emerging-market loan losses accelerate, he’s raising money, cutting about 15,000 jobs globally and exiting or restructuring about $100 billion of assets. Standard Chartered has reduced exposure to India by about a fifth."
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