StanChart (India) has also applied for new branch licences with the Reserve Bank. During the current financial year, the bank will activate its electronic banking & payment services, offer interest rate swaps and go in for more affinity and co-branded cards.

Deposits grew by 11 per cent to Rs 5,352.64 crore from Rs 4,801.71 crore in 1998-99 while advances went up by 28 per cent to Rs 3,381.21 crore from Rs 3,179.73 crore. As a percentage of working funds, operating profit stood at 3.47 per cent (2.80 per cent); non-interest income at 2.93 per cent (3.38 per cent) with interest income at 11.93 per cent (11.55 per cent). Return on assets improved to 3.12 per cent (2.63 percent).

Net non-performing assets (NPA) as a percentage of advances stood at 3.18 per cent (2.42 per cent) with capital adequacy at 8.3 per cent (9.3 per cent).

"This has been a year of real achievement for the bank. We are now better prepared that ever to meet the challenges in the market place. We are much leaner and fitter, and we have continued our investments in new products, technology and infrastructure. Our customer service culture and operational platforms are also getting stronger. The bank is well placed now to compete in the Indian market place," StanChart (India) chief executive Martin Fish said.

On the bank's increase in NPA to 3.18 per cent, StanChart (India) head-corporate & institutional banking, Jaspal Bindra, said that "the increase should be seen in the light of growth in advances by 28 per cent. And further that bank had adopted a more stringent approach to NPAs".

Chief executive Fish listed StanChart (India) strides in consumer banking with assets crossing Rs 1,000 crore anddeposits at Rs 4,000 crore; linkage of metro branches, phonebanking; growth in credit cards by 30 per cent to 500,000; and Y2K compliance as the achivements of 1998-1999 as also the bank's closure of three branches in Amritsar, Calicut, Vasco-da-gama and the ESS.

StanChart (India) has 19 branches in the country following closuree of its three branches in Amritsar, Calicut, and Vasco-da-gama. The bank is currently in the process of a restructuring and staff reductions and investments in technology form part of this intiative.