Global banking giant Standard Chartered Bank today said it is planning to raise up

RELATED ARTICLES Andhra Bank Q3 net down 8.5% at Rs 303 cr Govt approves Rs 7,900 crore capital infusion in SBI Allahabad Bank Q3 net up 35% at Rs 560 cr Indian Bank Q3 net up 7% at Rs 526 cr SBI gets approval for up to $1.6b infusion

to USD one billion (over Rs 4,500 crore) by June through Indian Depository Receipts (IDR).

"We remain keen to pursue our intent to have an IDR offering ... We are looking at quarter two (April-June 2010) and we are looking at USD 500 million to USD 1 billion," Standard Chartered Bank (South Asia) chief executive Neeraj Swaroop said on the sidelines of an event on microfinance.

The offering is subject to the market conditions and the bank will have to take the final decision on it, he said. The IDR would be issued by parent entity Standard Chartered PLC.

Like American or Global Depository Receipts (ADRs), where Indian companies raise resources overseas, IDRs enable foreign companies to do the same from India.

ADRs or IDRs are derivative instruments that derive their value from the shares deposited with custodians. The foreign companies deposit shares with a custodian, who in turn issues depository receipts based on these shares. The receipts are based on ratio of shares equivalent to depository receipt.

The government notified the IDR rules in 2004. The market regulator SEBI norms too are in place for number of years now.

SEBI guidelines permit only those companies listed in their home market for at least three years and have been profitable for three of the preceding five years for IDR issues.