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| Edited By: Neelasri Barman |Source: DNA |Updated: Mar 18, 2018, 05:00 AM IST
The Indian unit of Standard Chartered Bank, the largest foreign bank in the country, reported a 33% drop in profit before tax at $804 million for full year 2011 compared with $1,197 million a year ago due to worsening macroeconomic conditions, Sunil Kaushal, regional chief executive for India and South Asia, said.
Income from Indian operations fell 11% at $1.8 billion compared with $2.02 billion a year ago.
In 2010 India had emerged as the most profitable geography across 70 nations the bank operates in. Currently, Hong Kong is the most profitable geography for the bank with profit before tax at $1.55 billion, recording a growth of 41% over the previous year.
"Repeated rate hikes by the Reserve Bank of India to contain inflation, along with dampening business sentiment, impacted our business. However, we remain committed to the long-term growth prospects of the country and expect this year to be better than the last," said Kaushal.
Income from wholesale banking operations in India dropped 14% at $ 1.32 billion while income from consumer banking opera-tions fell 2% year on year at $482 million.
Loan impairment or provisions in the wholesale banking soared by 248% year on year to $80 million, while that for the consumer banking division decreased a 43% to $32 million.
Referring to net interest margin, Kaushal said it dropped to 3.1% in 2011 from 3.4% in 2010.
However, the bank remains optimistic about the growth prospects in 2012.
"We remain cautiously optimistic about our growth prospects in 2012 and confident about longer-term prospects," he said, adding the bank is comfortable with its exposure to telecom and aviation sectors.
Globally, the bank posted an 11% year-on-year rise in profit before tax at $6.7 billion compared with $ 6.1 billion a year ago. Total income rose 10% year on year to $17. 6 billion in 2011 compared with $16 billion a year ago.
The bank said in its results presentation that 2012 has started on a strong note and sees good momentum in both consumer and wholesale banking. The bank remains focused on balance-sheet foundations and well positioned in growth markets. With agency inputs.
