Why StanChart chief was ousted

RANA Talwar, the ousted chief executive of international bank Standard Chartered, had lost the confidence of the entire board, it has emerged. Fellow directors voted unanimously for his departure at a special board meeting last week, following mounting discontent over his allegedly confrontational management style.

Insiders played down talk of a rift between Talwar and his chairman Sir Patrick Gillam. 'It was a wider issue. Rana's way of operating had a much broader effect,' says one.

Gillam's own position has become more tenuous, according to observers. He is planning to step down by his 70th birthday in 2003, making way for his likely successor, Sir Ian Prosser, chairman of hotels group Six Continents. But some directors believe Gillam has himself been weakened by the run-in with Talwar, and he is under pressure to go sooner.

New boss Mervyn Davies, a Standard veteran, is embarking on a charm offensive with shareholders and big customers, ahead of the bank's full-year results on 20 February.

Sources said the bank, which has previously been courted by several suitors including Barclays and Lloyds TSB, has not received any fresh approaches.

Standard's exposure to collapsed power group Enron is relatively small at £17m, through two large syndicated loans and one smaller loan. Standard shares dropped 5 1/2p to 837 1/2p.