Standard & Chartered PLC, the UK based multinational banking firm, on Tuesday announced outstanding performance for 2008 with income growth of 26% to $13.97 billion in which India has contributed 21% share in its total margins.
Last year (2007), India’s contribution was 17.1% as StanChart said in the release. ‘India continues to remain the second-largest contributor in profits to StanChart, while the assets of StanChart India - the Indian wing of Standard & Chartered - rose to 37% to $943 million before the tax this year.’
This growth in StanChart India bank’s profit was held due to wholesale banking operations despite continuous growth in bad loans, added bank. The income of $146 million of the sale of its asset management business to IDFC is also included in the whole profit. If this profit is excluded, the net margin for the bank reduces to $726 million.
The growth in wholesale banking that include corporate banking, treasury and investment banking rose by 16% while in consumer banking that include retail banking, private banking, and small and medium enterprises banking profits were up 13%.
This result came despite the upward growth of Non-Performing Assets (NPAs) in terms of bad loans that rose by 74% to $157-million. In NPA, the personal loans share a thick portion of the part while the credit card dues performance remains unchanged. The debt in SMEs and mortgages also perform worse on the back of global turmoil and worsening recession.
However, StanChart India says that this performance is better than the expected target and India’s figure is far above than the global figure.
That’s why StanChart India is concentrating on the Indian market as StanChart regional CEO (India and south Asia) Neeraj Swaroop said, “We would be interested in listing in India. It is something that we are evaluating, but we haven’t taken a decision. It will depend on many factors. One of them being market conditions.”
‘Standard Chartered has been working on plans to tap the Indian Depository Receipts market. It has already appointed merchant bankers for the issue’, he added.
Like India, Singapore is the third largest contributor in the share and one among the fastest growing market. This year, its profit rose by 67% to $744 million while Hong Kong, the largest contributor, witnessed 15% fall to $1.014 billion in the corpus of Standard & Chartered PLC.
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