The UK banking institution, Standard Chartered has decided to purchase the banking division of American Express Bank for about $1.1 billion in order to expand branch licenses in India and Taiwan and add wealthy customers.

According to the terms and conditions of the contract, Standard Chartered is paying up $300 million plus AEB’s net asset value of $860m. The deal will be funded through Standard Chartered’s cash resources, and is expected to be accomplished in the first quarter of 2008.

Peter Sands, Chief Executive Officer, stated that he aspires to double-up private-banking centers by 2011, and has spent over $5 billion on acquirements in Asian market since 2005. American Express Bank was established in 1919, and has private-banking divisions across five continents with around 20 marketing offices, 10,000 clients and $22.5 billion of assets under management.

Standard Chartered introduced its private banking operations earlier this year, spread across worldwide financial capitals comprising Singapore, Hong Kong, Beijing, Dubai and London.

Mike Trippitt, a London-based analyst at Oriel Securities Ltd, said, “It looks like a good deal for Standard Chartered. They should be able to grow the business quite nicely and it will help lift the private-banking side.”

Standard Chartered has made a series of fresh purchases to strengthen its banking existence in rising marketplaces. It purchased Taiwan’s Hsinchu International Bank for £650m in September and grabbed Pakistan’s Union Bank for around $511m. The group has purchased stakes in banking operations in Indonesia and China.

The shares of Standard Chartered bank gained 4.2 percent to 1,530 pence in London, valuing the company at 21.5 billion pounds. American Express arose 4.5% to $60.80 in New York Stock Exchange composite trading.