Standard Chartered posts 51% rise in net

Standard Chartered posts 51% rise in net
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First Published: Tue, May 22 2007. 12 00 AM IST
Updated: Tue, May 22 2007. 12 00 AM IST
Standard Chartered Bank, the largest foreign bank with operations in India, on Monday announced that it posted a 51% rise net profit at Rs1,364.3 crore for the year ended December 2006 over Rs904.8 crore for the year ended December 2005.
The total income for the bank has seen a rise of 31% during the year to Rs5,390.1 crore from Rs4,114 crore in 2005.
Standard Chartered Bank has evidently seen a record rise in its India operations over the last two years. Its closest competitor in India, Citibank, had recorded a rise of 17.5% in its net profit in December 2005 to Rs705 crore from Rs600.03 crore in the previous year.
The bank attributes the rise in total income to growth in terms of fee based income arrived at from the distribution of products such as mutual funds, wealth management and investment banking deals. The net interest income for the bank has also increased, the bank said in a communication.
This indicates that Standard Chartered has earned more from loans—such as mortgages, personal loans—and spent less in servicing deposits from customers.
Neeraj Swaroop, CEO, Standard Chartered India, said, “We had a year of exceptional growth in both our consumer and wholesale banking businesses. Corporate finance, foreign exchange and derivatives and transaction banking within wholesale banking; and wealth management, SME and personal loans in the consumer bank turned in a strong performance.”
Also, the bank feels adequately equipped to service its wholesale banking customers apart from consumer banking business.
“Standard Chartered has been a key partner in supporting the international ambitions of Indian companies and has participated in several landmark cross-border deals in last year. Given the strong growth momentum in our key businesses—profits have more than doubled in the last two years—we are clearly poised to strengthen our leadership position in India,” Swaroop explained.
According to Bloomberg, Standard Chartered India has been adviser to four merger and acquisition deals during the year ended December 2006. The total value of the deals, it has announced, is Rs233.56 crore out of the 612 deals that were announced during the year. The total value of the deals stood at Rs1,075 crore.
Standard Chartered India’s parent bank, Standard Chartered Plc, has pumped an additional Rs1,360 crore in Indian arm, over and above last year’s figure of Rs1,300 crore.
“This reflects our commitment to the Indian market. We now employ over 17,000 in India against 14,500 in March 2006,” Swaroop said.
The total assets of the bank, which comprise consumer loans of the banks grew 28% to Rs58,853 crore.
The deposit base of the bank increased 20% to Rs34,174 crore.
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First Published: Tue, May 22 2007. 12 00 AM IST
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