The Hindu Business Line : StanChart India operating profit rises 89% to $606 m

Income up: Mr Neeraj Swaroop (right), Regional Chief Executive-India and South Asia, Standard Chartered Bank India and Mr Anurag Adlakha, Chief Financial Officer, India and South Asia, at a press conference in Mumbai on Tuesday. -

Our Bureau

Mumbai, Aug 5 Standard Chartered Bank India has reported an 89 per cent jump in operating profit at $606 million in the first half of the calendar year 2008 from January to June, against $320 million in the corresponding period of the previous year. The bank now contributes 23.4 per cent of Standard Chartered Group’s global profit and is its second largest market next to Hong Kong.

The results include the proceeds from the sale of the bank’s asset management business which contributed $146 million as well as a robust increase in income.

Standard Chartered Bank had sold its mutual fund business to IDFC in March this year.

Excluding the sale of the AMC, Standard Chartered Bank has seen a 44-per cent growth in profit at $460 million.

Wholesale banking

Standard Chartered Bank has seen a 73-per cent rise in income at $975 million in the first six months of 2008. The bank has seen a strong growth in its wholesale or corporate banking business. Under wholesale banking, it saw a 53-per cent growth in income at $580 million. Operating profit from wholesale banking rose by around 47 per cent to $411 million.

Consumer banking

Income from the consumer banking business has seen a 35 per cent jump at $249 million.

Mr Neeraj Swaroop, Regional Chief Executive- India and South Asia, Standard Chartered Bank, said that the wholesale banking’s contribution to the bank’s profit had increased from 80 per cent to around 88 per cent.

He said that the bank had seen a strong growth in transaction banking, corporate finance, SME and mortgages (unsecured loans in particular)

Loan impairments

Loan impairments increased to $47 million against $32 million in the previous year.

Mr Swaroop said that the impairments mainly came from the consumer banking segment. “The increase in impairments reflects an increase in volume rather than a percentage increase in delinquency,” he said.

The bank has in the past two years increased its exposure to the unsecured portfolio which includes personal loans and credit cards.

Mr Swaroop said that despite high inflation and volatile oil prices, the bank expected to see strong growth since it had multiple revenue streams.

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StanChart India operating profit rises 89% to $606 m