StanChart posts $624 mn PBT in H12010

British banking giant Standard Chartered's Indian operations registered a healthy 19 per cent rise in pre-tax profit in the first half of 2010 at $624 million, making India the bank's biggest market world-wide.

"The economic fundamentals are very strong in India and we consider it to be our core market. We have grown both in the consumer and wholesale banking here," Standard Chartered Chief Executive for India and South Asia Neeraj Swaroop told reporters here today.

In the fist half of last year, the StanChart India's PBT stood at $526 million. At the group level, StanChart Plc's profit before tax stood at $3.12 billion, up 10 per cent from $2.83 billion, while overall net profit stood at $2.15 billion.

The lender, which listed on the domestic bourses by issuing Indian depository receipts in June--the first by any company in the country--saw net interest margins firming up to 3.8 per cent here while loan growth rose 24 per cent, he said.

However, the bank did not disclose its net profit for its Indian operations, as the half-yearly computation is done on a global level only, Swaroop said.

Its deposits in India went up 30 per cent to $13.1 billion while advances rose to $10.2 billion in the first half, Swaroop said. The lender also saw provision for non-performing assets or loan impairments declined by half to $43 million, down from $97 million, on the back of an improved economic climate in India, he said, adding the bank is targeting a 17-20 per cent rise in deposits and advances in the country in the current year.

"Our wholesale banking business will continue to grow on good demand from corporates while on the consumer banking side, we are seeing good demand from SMEs and mortgage loans," Swaroop said.

During the first half, its profits from consumer banking grew 121 per cent to $53 million while wholesale banking profit witnessed a 14 per cent surge to $571 million. Its fee-income or non-interest income stood at $455 million while net interest income was $556 million, Swaroop said.

StanChart hired 1,100 in the country so far this year and plans to recruit 1,400 more in the second half, he said.

The bank also announced a dividend, under which Indian investors will be getting 2.3 cents for every share they hold, Swaroop said.

The bank is "very keen" to list in China, just like it did in India and is waiting for the release of a policy paper on listing of foreign companies after which it will start pursuing its plans, group executive director and chief executive for Asia Jaspal Bindra said.

"Like in the case of India, we want to show we are serious about the Chinese market and will not be going there for the capital alone," he said.