StanChart profit grows 12% but India biz disappoints

New Delhi:Standard Chartered Bank India today reported a 3 percent decline in operating profit at $98 million for 2011, but said it is confident of resuming the growth path this year.

"Operating profit was lower by $3 million, or 3 percent, at $98 million," StanChart said in statement. At the group level, the UK-based Standard Chartered Plc's posted 12 percent growth in net profit at $4.74 billion in 2011. It had net profit of $4.23 billion in 2010.

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The bank's Indian operation has registered two percent decline in income from 2010 to $482 million in last year.The bank has attributed the decline in income to "rising interest rates and increased levels of competition compressing lending margins," StanChart said. Loan impairment was however significantly lower by 43 percent at $32 million as a result of the focus on secured lending and improved portfolio quality.

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Operating profit for its consumer banking division, declined to $98 million in 2011, from $101 million in 2010. The bank's operating profit from the wholesale banking division fell to $706 million last year in $1.09 million in 2010.

Looking ahead, StanChart said India had a tough 2011 but it is confident that it will resume the growth path in 2012, as the bank remains confident of the longer term growth prospects of India operations.

PTI