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Standard Chartered Bank 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.
