StanChart's profits shrink by 15.7%; mainly due to provisioning of bad loans
By Neelima Shankar
Jul 11, 2012
Print    Email    RSS   
Standard Chartered Bank, Indian arm of the leading global bank has registered reduced profits. The bank's bottomline for the FY12 stood at Rs. 1,736 crore; down from Rs. 2,059 crore a year ago.

The reduced profits are primarily due to the provisioning it had to make on account of rising nonperforming assets (NPA). The foreign banks in the country have to make filings of their annual results with the central bank.

Standard Chartered, which has the largest branch network among the foreign banks in the country saw its gross NPA increase by Rs. 2,064 crore; while the net NPA increase by Rs. 296 crore. A major chunk of NPA came from four accounts which contributed nearly Rs. 2,000 crore this fiscal against Rs. 336 crore last year.

Increasing bad loans made the bank made higher provisioning to cover those accounts; it created provisions of Rs. 2,765 crore up from Rs. 1,817 crore it made in the preceding year. The UK based bank also saw an increases exposures in power and real estate sectors.

The bank's deposits grew by 9.5% to Rs. 63,964 crore, while the bank disbursed Rs. 55,570 crore for the same period, a growth of 13%. The capital adequacy ratio for the FY11-12 was 11.05%.

The results for StanChart is totally different from those of its peers; other major foreign banks, Deutsche Bank and Citibank both registered a healthy positive growth in their net profits. While HSBC Bank, the main competitor of the bank registered a growth of 30%.

(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Recurring deposits: to the benefit of the...
The new avatar of savings account would...
Fetch higher interest rate on your savings...
Carnival of Indian Personal Finance Blogs #6
12 point conduct checklist for bank and...

MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive