Standard Chartered India has reported 39 fall in its profit

By | June 28, 2011

A recent press report said that Standard Chartered India has reported a 39 per cent decline in profit before tax to $378 million in the half year ended June 2011, from $624 million in the corresponding year-ago period. The fall in profit was due to the lower income and higher provision.

In 2010, India was the largest contributor to the group’s profits, in the first half of 2011; it has fallen to the third position.

Mr. Neeraj Swaroop, Regional CEO, India and South Asia, said that the rising interest rates and the general slowdown in the macro environment has led to slowdown in projects, resulting in lower profits. He said that the immediate outlook is somewhat challenging.

Income from India operations declined to $893 million during the first half, from $1.101 billion last year.

Reports said that the charges on account of loan impairment increased to $72 million from $43 million. There was also a one-off specific impairment charge on corporate bonds to the tune of $50 million. The bank offers personal loan, home loan, business loans, vehicle loans etc.

Mr. Swaroop said that the bank has made higher provisions as a cautious measure and it was not seeing a rise in NPAs. But the provision is in anticipation of potential rise in NPAs given the soft environment going ahead.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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