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Standard Chartered Bank Plc’s India unit has posted a 45% rise in operating profit at $450 million in six months ended June 2013 on robust growth in income from wholesale as well as consumer banking stream.
It’s operating profit for January-June 2012 was $311 million.
It posted 17% growth in income at $927 million up from $790 million a year ago. The income from wholesale banking that also covers large corporate rose by 20% to $682 million.
The consumer banking including personal loans, credit cards, Small and medium units segment grew by 10% to $245 million in first half ended June 2013.
The net interest income improved to 3.7% from 3.5%.
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, bank took action to reshape the business, adjusting our risk profile and priorities, bank said.
Bank remains cautiously optimistic about 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," Stanchart said in statement.
With volatility seen in last few weeks, the may be further moderation in demand for credit from consumer and wholesale side, he added.
Bank was also cautious on growing its credit cards business. There is economic slowdown and its effects are percolating like in areas of jobs losses. He, however, did not elaborate further.
Its loan impairment charges rose to $113 million from $105 million. 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 balance part of year, Kaushal said.
