The loss was incurred on account of a one-time out-flow of Rs 506.5 crore on the account of the settlement reached with National Housing Bank (NHB) relating to the stock market scam of 1992 and an extraordinary expense of Rs 144.3 crore for facilitating the bank’s early retirement scheme.
The growth of the bank’s profit before tax has been attributed to the control of operating costs, which decreased by 14 per cent and an increase of 40 per cent in non-fund income.
This was, however, partly set off by a 37 per cent decline in net-interest income.
The drop in interest income is in line with the bank’s plan to integrate this business with the Standard Chartered bank.
Standard Chartered group’s CEO, India, Jaspal Bindra said: “The year 2001-02 had presented us with the challenging task of integrating the Grindlays operations. With all significant milestones of integration having been met, the annual results for the StanChart group in India reflects the realisation of the full value of the Grindlays franchise.” The highlight of the previous year is said to be the successful implementation of plans to consolidate the retail franchise in India.