India is no. 1 profit centre for StanChart Group

India has become the largest profit centre for multinational bank Standard Chartered plc, recording a profit before tax of USD 1.2 billion for 2010, against USD 1.06 billion in 2009. This is an increase of 13% and accounts for 19.5% of the group's total profits.

The Indian operations of the banking group that got listed through an IDR issue last year overtook Hong Kong in terms of profitability. Speaking to reporters after announcing the bank's results, Mr Neeraj Swaroop, Regional CEO, India and South Asia, said the diversified nature of the business helped the bank post good results. While the wholesale banking segment contributed USD 1.09 billion to the operating profit (a growth of 9% from USD 1 billion), the consumer banking segment accounted for USD 101 million (up 87% from USD 54 million). Loan impairment came down significantly to USD 82 million, from USD 182 million. Mr Swaroop attributed this to a superior credit environment and also because the bank took a large chunk of the loan impairment in 2009. Total income for the bank in India rose 12% to USD 2.02 billion from USD 1.81 billion. Total advances grew 28% to USD 11.3 billion and deposits grew 27% to USD 13.5 billion. There has been some pressure on interest margins, which have declined from 3.8% to 3.4%.