Quick response to pandemic may help India in recovery: Bill Winters, Group CEO Standard Chartered

India’s quick response to Covid-19 outbreak will stand it in good stead when recovery happens, according to Stanchart’s group CEO. The Asia-focused global bank will concentrate on expanding its business in India and South Korea, which offer distinct talent pools and demanding customers well versed with digital technologies, he said. “The quick response of the government will stand in good position in recovery,” Winters told ET’s Global Business Summit, conducted virtually.
"The challenge the government faces now is how to get some of the businesses which aren’t in a position to face this." India is among the countries worst hit by the Covid-19 pandemic, with more than 5.4 million recorded cases and nearly 90,000 deaths so far. The government imposed a nation-wide lockdown for two months from March 25 and the economy contracted 23.9% in the quarter to June. It is expected to shrink 9% this fiscal. The nation is getting back to normalcy.

While no major nation escaped the pandemic, India’s performance has been mixed, with high infections but low mortality rates. “I’m concerned but also impressed by the resilience of Indians. I’m impressed by the low mortality rate,” said Winters. As the world comes to terms with the pandemic, the recovery rates vary from country to country, with some witnessing sharp recovery and others a bit slower, he said. “It will be different from market to market. The Chinese economy is recovering close to V shape,” said Winters. Actions of central banks in slashing interest rates and flooding the market with liquidity have helped in reviving consumer demand, though some of it has found its way to speculation in financial markets, he said.

"Some of the money has gone into savings and securities markets. There is a reasonable strong consumer recovery," said Winters. The Reserve Bank of India has permitted restructuring of loans for businesses affected by the pandemic and Standard Chartered Bank would do its bit to support businesses amid the low level of losses so far, said its group CEO. "We had very few losses in India related to the pandemic. We are offering dispensation where we can," he said. Even as its strong balance sheet and the cleaning up of the bad loans over the past few years helped it face the situation better than peers, the lender is confident that business is returning to normal.

"The early signs are encouraging. Consumer credit is back to pre-pandemic level," said Winters. The lender, which saw a pile-up of bad loans both in the consumer and corporate lending in the past, plans to use its experience in other parts of the region, including South Korea and China. Digital would become the mainstay, said Winters. "We are leveraging our experiences in China and Singapore. Most of our spending is on digitising," he said. On the debate about working from home or returning to office, Standard Chartered would adopt a hybrid model. "We are talking about a hybrid - office, and work from home. Some want to go to office, some say they never want to go to office," said Winters.