Standard Chartered's income from Indian operations continues to fall

MUMBAI: Standard Chartered Bank's income from Indian operations has seen a further slowdown, said the bank in its interim management statement for the third quarter of 2011, released on Wednesday. Meanwhile, income for Standard Chartered Plc in the first nine months of 2011 has grown by a high single-digit percentage over the first nine months of 2010, said the bank in its statement. "Over the same period, operating profit before tax grew at a double-digit rate," it added.

The operating profit of the UK-based bank's Indian branches had plunged 39% to $378 million in the first half of 2011, for the first time in about six years.

"Income remains well spread by geography. Whilst we have seen a further slowdown in India, and Korea remains muted, we continue to see strong performances in Hong Kong and Singapore," said the bank in its statement. "Despite competition remaining strong across our markets, we are seeing a number of opportunities to reprice business and increase market share," it added.

India, which was the largest contributor to the Standard Chartered Group's profits in the first half of 2011, had slipped to the third position. Profitability from the bank's Indian operations has been under strain, following the tough macroeconomic environment, slippages of deals, increased competition and regulatory changes.

In such challenging times, the bank is expected to see a change of guard. In an internal announcement, bank employees have been informed that Sunil Kaushal, head of Standard Chartered Bank's operations in Taiwan, will head the bank's India operations, said a source in the know of the development.

However, this is subject to regulatory clearance. Neeraj Swaroop, Standard Chartered's regional chief executive officer of India and South Asia, will be relocating to Singapore as regional chief executive officer for southeast Asia.

Source: EconomicTimes