Standard Chartered Bank's Indian operations reported 51 per cent rise in net profit in 2006-07 to Rs 1,364 crore from Rs 904.8 crore a year earlier on higher interest and fee income. | |
| In calendar 2006, the share of Indian operations in the bank's global profits increased to 12.6 per cent from 8.8 per cent in 2005. |
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| Standard Chartered has invested Rs 1,360 crore in the Indian operations in 2006-07 against Rs 1,300 crore a year earlier. This investment is by way of profit retention as well as fresh infusion. |
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| The bank's total income during the year increased 31 per cent to Rs 5,390.1 crore from Rs 4,114 crore in 2005-06 and total assets to Rs 58,853 crore, an increase of 28 per cent over the previous year. |
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| During the year, the bank's deposits rose 20 per cent to Rs 34,174 crore, while advances jumped 25 per cent to Rs 30,103.7 crore. |
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| The growth in deposits and advances has been below the industry average. However, it must be noted that most foreign banks do not keep loans on their books as they sell part of their portfolios through securitisation. The restriction on branch presence in India is also one reason they attribute for the slower growth in deposits. |
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| Sanjeev Agrawal, chief financial officer, South Asia, Standard Chartered Bank, said, "Fee income as a percentage of total income has improved to 24 per cent reflecting our ability to provide value-added products to our customers. A sharper focus on improving efficiency has helped keep the increase in operating expenses moderate at 17 per cent, with the cost-income ratio improving to 37.4 per cent from 41.1 per cent in the previous year.'' |
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| The bank has received Reserve Bank of India's approval to open two new branches and 40 new automated teller machines (ATMs). This will increase bank's presence in 33 cities. |
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| At present, the bank has 81 branches in 31 cities and 191 ATMs. It has increased its employee strength to over 17,000 in India against 14,500 in March 2006. |
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