India replaces Hong Kong as StanChart’s profit hub

The lender’s aggressive moves in its diversified nature of its business propelled growth in India.

India has beaten Hong Kong to emerge as the world's top profit centre for Standard Chartered Bank. Buoyed by a fat loan book and fees, profit before tax of the British bank's Indian operations touched $1.2 billion in 2010, up 13% from the previous year's levels. StanChart India's profit now accounts for around 20% of the group's global profits. 

Amid a slowdown, profit from advanced markets, comprising the Americas, the UK and Europe, fell 38% to $233 million during the year. In rupee terms, the bank's profit works out to around Rs 5,386 crore ($1.2 billion), at an exchange rate of Rs 45 to a dollar. 

In contrast, the second-largest government-owned lender, Canara Bank , earned a profit before tax of Rs 5,060 crore ($1.12 billion) for the financial year ended March 2010 while the third largest, Punjab National Bank , earned Rs 7,326 crore ($1.63 billion). StanChart has just 94 branches in the country against over 3,000 branches each of the aforesaid government banks. "We are obviously doing well on the back of a strong economy. 

“We attribute this performance to the diversified nature of our business," 'Neeraj Swaroop , the bank's chief executive, India and South Asia, told the media here on Tuesday . StanChart is among the MNC banks with large and aggressive treasury operations, comprising bond and currency trading, and derivatives.

View the full story in Economic Times.