Eastern Bank Ltd (historic)
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The Eastern Bank Limited, was a British bank founded in 1909 in London, to help finance trade with
Far east The ''Far East'' was a European term to refer to the geographical regions that includes East and Southeast Asia as well as the Russian Far East to a lesser extent. South Asia is sometimes also included for economic and cultural reasons. The ter ...
. In 1957
Chartered Bank The Chartered Bank of India, Australia and China (informally The Chartered Bank) was a bank incorporated in London in 1853 by Scotsman James Wilson, under a Royal Charter from Queen Victoria.
(now Standard Chartered Bank), acquired Eastern, and eventually absorbed it into
Standard Chartered Standard Chartered plc is a multinational bank with operations in consumer, corporate and institutional banking, and treasury services. Despite being headquartered in the United Kingdom, it does not conduct retail banking in the UK, and around 9 ...
in 1971.


History


Early years : 1909 - 1945

Eastern Bank Limited was founded in 1909 in
London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
, as a new Eastern exchange bank, to help finance trade with the
far east The ''Far East'' was a European term to refer to the geographical regions that includes East and Southeast Asia as well as the Russian Far East to a lesser extent. South Asia is sometimes also included for economic and cultural reasons. The ter ...
. The next year Eastern established branches in
Bombay Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
and
Calcutta Kolkata (, or , ; also known as Calcutta , List of renamed places in India#West Bengal, the official name until 2001) is the Capital city, capital of the Indian States and union territories of India, state of West Bengal, on the eastern ba ...
. Right from its inception, the bank had a number of powerful
institutional shareholders An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linked co ...
, including the Sassoon family. Eastern expanded into the Ottoman province of
Mesopotamia Mesopotamia ''Mesopotamíā''; ar, بِلَاد ٱلرَّافِدَيْن or ; syc, ܐܪܡ ܢܗܪ̈ܝܢ, or , ) is a historical region of Western Asia situated within the Tigris–Euphrates river system, in the northern part of the F ...
(now
Iraq Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq ...
), opening a
Baghdad Baghdad (; ar, بَغْدَاد , ) is the capital of Iraq and the second-largest city in the Arab world after Cairo. It is located on the Tigris near the ruins of the ancient city of Babylon and the Sassanid Persian capital of Ctesiphon ...
branch in 1912. The province had promises of a lucrative oil exploration concession, being actively pursued by a consortium which included
Anglo-Persian Oil Company The Anglo-Persian Oil Company (APOC) was a British company founded in 1909 following the discovery of a large oil field in Masjed Soleiman, Persia (Iran). The British government purchased 51% of the company in 1914, gaining a controlling number ...
(now BP),
Royal Dutch Shell Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New Yo ...
, and
Deutsche Bank Deutsche Bank AG (), sometimes referred to simply as Deutsche, is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Sto ...
named - Turkish Petroleum Company (TPC), now Iraq Petroleum Company (IPC). Eastern Bank had to close its Baghdad branch at the start of the
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
due to the alliance from the
Ottoman Empire The Ottoman Empire, * ; is an archaic version. The definite article forms and were synonymous * and el, Оθωμανική Αυτοκρατορία, Othōmanikē Avtokratoria, label=none * info page on book at Martin Luther University) ...
and
German Empire The German Empire (),Herbert Tuttle wrote in September 1881 that the term "Reich" does not literally connote an empire as has been commonly assumed by English-speaking people. The term literally denotes an empire – particularly a hereditary ...
, and competition from other banks that included Deutsche Bank and the National Bank of Turkey. However, Eastern reopened its Baghdad branch within a year and opened branches in
Basra Basra ( ar, ٱلْبَصْرَة, al-Baṣrah) is an Iraqi city located on the Shatt al-Arab. It had an estimated population of 1.4 million in 2018. Basra is also Iraq's main port, although it does not have deep water access, which is hand ...
(1915), and Amarah (1916), in the wake of the
British invasion The British Invasion was a cultural phenomenon of the mid-1960s, when rock and pop music acts from the United Kingdom and other aspects of British culture became popular in the United States and significant to the rising "counterculture" on b ...
of Iraq. With the establishment of a British Mandate over Iraq, the bank expanded further into
Mosul Mosul ( ar, الموصل, al-Mawṣil, ku, مووسڵ, translit=Mûsil, Turkish: ''Musul'', syr, ܡܘܨܠ, Māwṣil) is a major city in northern Iraq, serving as the capital of Nineveh Governorate. The city is considered the second large ...
(1919) and
Kirkuk Kirkuk ( ar, كركوك, ku, کەرکووک, translit=Kerkûk, , tr, Kerkük) is a city in Iraq, serving as the capital of the Kirkuk Governorate, located north of Baghdad. The city is home to a diverse population of Turkmens, Arabs, Kurds, ...
(1926). Eastern also expanded to other British possessions
East of Suez East of Suez is used in British military and political discussions in reference to interests beyond the European theatre, and east of the Suez Canal, and may or may not include the Middle East.
, namely
Colombo Colombo ( ; si, කොළඹ, translit=Koḷam̆ba, ; ta, கொழும்பு, translit=Koḻumpu, ) is the executive and judicial capital and largest city of Sri Lanka by population. According to the Brookings Institution, Colombo me ...
, Ceylon (1920),
Madras Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...
(1922),
Karachi Karachi (; ur, ; ; ) is the most populous city in Pakistan and 12th most populous city in the world, with a population of over 20 million. It is situated at the southern tip of the country along the Arabian Sea coast. It is the former cap ...
(1923), and
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
(1928). British banks also expanded into the small sheikhdoms in the
Persian Gulf The Persian Gulf ( fa, خلیج فارس, translit=xalij-e fârs, lit=Gulf of Persis, Fars, ), sometimes called the ( ar, اَلْخَلِيْجُ ٱلْعَرَبِيُّ, Al-Khalīj al-ˁArabī), is a Mediterranean sea (oceanography), me ...
, British protectorates which were short of modern financial institutions. Eastern opened a branch in
Bahrain Bahrain ( ; ; ar, البحرين, al-Bahrayn, locally ), officially the Kingdom of Bahrain, ' is an island country in Western Asia. It is situated on the Persian Gulf, and comprises a small archipelago made up of 50 natural islands and an ...
in 1920 to leverage the close trading links between the island and Bombay, a key stronghold of Eastern bank. Until 1944, Eastern remained the island's only bank. By the late 1930s, profits rose because of the booming oil industry in the Arab sheikhdoms. However, Eastern couldn't expand further in the region as the Imperial Bank of Persia (later the
British Bank of the Middle East HSBC Bank Middle East Limited is the largest and most widely represented international bank in the Middle East. History The Imperial Bank of Persia (Persian: بانک شاهنشاهی ایران; Bank-e Šâhanšâhi-ye Irân) was a British ban ...
) held near monopoly agreements during the 1940s with the rulers of several important sheikhdoms, especially
Kuwait Kuwait (; ar, الكويت ', or ), officially the State of Kuwait ( ar, دولة الكويت '), is a country in Western Asia. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the nort ...
. During the 1930s and 1940s,
Barclays Bank (DCO) Barclays () is a British multinational universal bank, headquartered in London, England. Barclays operates as two divisions, Barclays UK and Barclays International, supported by a service company, Barclays Execution Services. Barclays traces ...
started acquiring stake in Eastern Bank and in 1939 the chairman of Barclays (DCO) joined the board of Eastern Bank.


Post world war: 1945 - 1957

After the
Second World War World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, Eastern opened branches in
Penang Penang ( ms, Pulau Pinang, is a Malaysian state located on the northwest coast of Peninsular Malaysia, by the Malacca Strait. It has two parts: Penang Island, where the capital city, George Town, is located, and Seberang Perai on the Malay ...
, (Malaysia) (1947, closed 1958), with a sub-branch at Butterworth (1948, closed 1957),
Kuala Lumpur , anthem = '' Maju dan Sejahtera'' , image_map = , map_caption = , pushpin_map = Malaysia#Southeast Asia#Asia , pushpin_map_caption = , coordinates = , su ...
(1948),
Chittagong Chittagong ( /ˈtʃɪt əˌɡɒŋ/ ''chit-uh-gong''; ctg, চিটাং; bn, চিটাগং), officially Chattogram ( bn, চট্টগ্রাম), is the second-largest city in Bangladesh after Dhaka and third largest city in B ...
, (East Pakistan, now Bangladesh) (1948, closed 1958), and
Cochin Kochi (), also known as Cochin ( ) ( the official name until 1996) is a major port city on the Malabar Coast of India bordering the Laccadive Sea, which is a part of the Arabian Sea. It is part of the district of Ernakulam in the state of K ...
, (India) (1953, closed 1958). It also opened branches at
Doha Doha ( ar, الدوحة, ad-Dawḥa or ''ad-Dōḥa'') is the capital city and main financial hub of Qatar. Located on the Persian Gulf coast in the east of the country, north of Al Wakrah and south of Al Khor, it is home to most of the coun ...
, (Qatar) (1950),
Aden Aden ( ar, عدن ' Yemeni: ) is a city, and since 2015, the temporary capital of Yemen, near the eastern approach to the Red Sea (the Gulf of Aden), some east of the strait Bab-el-Mandeb. Its population is approximately 800,000 people. ...
, (Yemen) (1951), with a sub-branch at Steamer Point (1953, closed 1958),
Mukalla Mukalla ( ar, ٱلْمُكَلَّا, ') is a seaport and the capital city of Yemen's largest governorate, Hadhramaut. The city is in the southern part of the Arabian Peninsula on the Gulf of Aden, on the shores of the Arabian Sea, about east of ...
, (Yemen) (1955), and
Beirut Beirut, french: Beyrouth is the capital and largest city of Lebanon. , Greater Beirut has a population of 2.5 million, which makes it the third-largest city in the Levant region. The city is situated on a peninsula at the midpoint o ...
, (Syria) (1956). Barclays Bank DCO increased its stake as a strategic initiative to tap into its Arab customers via Eastern Bank, as Barclays had a strong
Jewish Jews ( he, יְהוּדִים, , ) or Jewish people are an ethnoreligious group and nation originating from the Israelites Israelite origins and kingdom: "The first act in the long drama of Jewish history is the age of the Israelites""The ...
customer base in
Palestine __NOTOC__ Palestine may refer to: * State of Palestine, a state in Western Asia * Palestine (region), a geographic region in Western Asia * Palestinian territories, territories occupied by Israel since 1967, namely the West Bank (including East ...
. By 1957, Barclays Bank DCO and the Sassoon family in total held a controlling 65% of the capital of the bank.


Amalgamation into Standard Chartered: 1957 - 1971

In 1957, the Mundhra Scandal inflicted heavy losses on Eastern Bank's Bombay and Calcutta branches. The same year, Barclays DCO and the Sassoon family sold their controlling interest in the bank to
Chartered Bank The Chartered Bank of India, Australia and China (informally The Chartered Bank) was a bank incorporated in London in 1853 by Scotsman James Wilson, under a Royal Charter from Queen Victoria.
, an Eastern Bank rival. At that time, Chartered bank faced the challenges of a post colonial world with new national government policies in China, India, Burma and Ceylon, and saw Eastern bank as a strategic acquisition. The bank remained a
wholly owned subsidiary A subsidiary, subsidiary company or daughter company is a company (law), company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company ...
of Chartered Bank, with some level of
autonomy In developmental psychology and moral, political, and bioethical philosophy, autonomy, from , ''autonomos'', from αὐτο- ''auto-'' "self" and νόμος ''nomos'', "law", hence when combined understood to mean "one who gives oneself one's ...
. The political changes in several Arab countries during the 1960s led to nationalisation of branches in Iraq, Aden, Mukalla, and Sheikh Othman, and these events greatly affected Eastern. During the same time, it opened branches in Sharjah (1958), Abu Dhabi (1961), Al Ain (Buraimi, Abu Dhabi) (1962), Seiyun (Yemen) (1962), and Bowbazar in Calcutta (1969). In 1969, Chartered Bank merged with the South African bank Standard Bank, forming
Standard Chartered Bank Standard Chartered plc is a multinational bank with operations in consumer, corporate and institutional banking, and treasury services. Despite being headquartered in the United Kingdom, it does not conduct retail banking in the UK, and around ...
. In 1971, Standard Chartered absorbed Eastern's operations, and the name "Eastern Bank Ltd" slowly disappeared.


References


External links

* {{Standard Chartered Banks established in 1909 Banks disestablished in 1971 Defunct banks of the United Kingdom Standard Chartered British overseas banks