The valuation of the foreign bank's asset management company (AMC) has increased to 6 to 7 per cent of the assets under management (AUMs) since the bank scrapped the deal with UBS.

Standard Chartered AMC had assets of about Rs 14,625 crore (Rs 146.25 billion) as of January 2008.

The UK-based bank has received expressions of interest (EoIs) from about 40 players, including Japanese major Shinsei Bank, Credit Agricole, Mirae Asset Group and Goldman Sachs.

"We have received around 40-odd applications, expressing interest to acquire the mutual fund business,'' said Neeraj Swaroop, regional chief executive for India and South Asia, Standard Chartered Bank.

Standard Chartered Bank is keen to retain its employees even if the management changes hands as it has promised its employees incentives on the condition that they continue with the organisation for at least two years after it gets regulatory approval for the sale.

Sources indicate that the institutions keen to acquire the AMC business will also have to retain the existing employees. New entrants are ready to retain the employees as they have no experience of the Indian market and it gives them easy access to the growing market.

It is important to note that, last year, Aviva [Get Quote], which was the frontrunner to acquire the bank's AMC business, had opted out of the race as it was not keen on retaining the existing employees, paving the way for UBS to emerge as the final suitor.

At about 5 per cent of the AUM, the Swiss bank had acquired the UK bank's mutual fund for Rs 516 crore (Rs 5.16 bilion). StanChart owns 74.99 per cent in the AMC, while another 25 per cent is held by Atul Choksey, the former promoter of Asian Paints [Get Quote].

The acquisition included 16 mutual funds, ten of which were fixed income, two involved "asset allocation" and four were in equities.