India has become the largest profit centre for multinational bank Standard Chartered plc, recording a profit before tax of $1.2 billion for 2010, against $1.06 billion in 2009. This is an increase of 13 per cent and accounts for 19.5 per cent of the group's total profits.
The Indian operations of the banking group that got listed through an IDR issue last year overtook Hong Kong in terms of profitability.
Speaking to reporters after announcing the bank's results, Mr Neeraj Swaroop, Regional CEO, India and South Asia, said the diversified nature of the business helped the bank post good results.
While the wholesale banking segment contributed $1.09 billion to the operating profit (a growth of 9 per cent from $1 billion), the consumer banking segment accounted for $101 million (up 87 per cent from $54 million).
Loan impairment came down significantly to $82 million, from $182 million. Mr Swaroop attributed this to a superior credit environment and also because the bank took a large chunk of the loan impairment in 2009.
Total income for the bank in India rose 12 per cent to $2.02 billion from $1.81 billion. Total advances grew 28 per cent to $11.3 billion and deposits grew 27 per cent to $13.5 billion. There has been some pressure on interest margins, which have declined from 3.8 per cent to 3.4 per cent. “There is pressure on margins due to increased competition. We expect that for the next six to seven months margins would remain flat, compared with 2010,” Mr Swaroop said.
Though StanChart did not open any new branches in India last year, it added 80 ATMs, many of which are express banking centres. The current branch network of the bank is 94.