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The Standard Chartered IDR crashed by 8 per cent in morning trading on the BSE on Tuesday after the US accused the bank of hiding billions of dollars of transactions with Iran despite the country being under tight financial sanctions imposed by the US.
The Stanchart IDR is the only listed IDR in India.
Stanchart was quoting at Rs 96.10, down 7.51 per cent at 10.25 am. It closed at Rs 103.90 on Monday.
However, StanChart clarified that the total value of transactions "which did not follow the U-turn was under $14m" only. "The Group does not believe the order issued by the DFS presents a full and accurate picture of the facts. The analysis that the Group shared with all the US agencies, demonstrates that throughout the period the Group acted to comply, and overwhelmingly did comply, with US sanctions and the regulations relating to U-turn payments. As we have disclosed to the authorities, well over 99.9 per cent of the transactions relating to Iran complied with the U-turn regulations," it said to the stock exchanges.
The bank reported a profit before tax of $3,948 million, up 9 per cent from $3,636 million in H1 2011. But StanChart’s January-June pretax profit growth is the slowest in a decade, hit by a slowdown in the consumer bank and "economic and political paralysis" in one of its biggest markets, India.
Normalised earnings per share were up 11 per cent at 116.6 cents. The board has declared an interim dividend of 27.23 cents per share, up 10 per cent.
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