Standard Chartered Plc’s India
unit has posted a 45 per cent rise in operating
profit at $450 million in the six months ended June, on robust growth in
the income from wholesale and consumer banking streams. The operating profit for
January-June 2012 was $311 million. It posted a 17 per cent growth in income at
$927 mn, up from $790 mn a year before. The income from wholesale banking rose
20 per cent to $682 mn. Consumer banking — personal loans, credit cards and
the small and medium units segment—grew 10 per cent to $245 mn. Net
interest income improved to 3.7 per cent from 3.5 per cent.
Sunil Kaushal, regional chief executive (India and South Asia), said there was
strong underlying momentum in both businesses, driven by good client activity
levels, despite challenges in the macro environment and currency drag. As an economy,
India has had a relatively tough couple of years, with falling GDP growth and a
decline in the rupee. As the market began to slow, action was taken to reshape
the business, adjusting the risk profiles and priorities, the bank said. It
rank remains cautiously optimistic about the outlook for the second half. “We
expect the macro environment in India to remain somewhat challenging and uncertain
but, despite this, both businesses have very good momentum as we begin the
second half,” said Stanchart. With volatility in recent weeks, there might be
further moderation in demand for credit from the consumer and wholesale side,
said Kaushal. He said the bank was also cautious on growing its credit card
business, given the slowing economy and job losses. He did not elaborate.
Loan impairment charges rose to $113 mn from $105 mn. Loan impairment is up
slightly year on year but the portfolio is well diversified, well
collateralised and short in tenor. The asset quality is expected to remain
stable in the rest of the year, Kaushal said.
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