StanChart Posts Rs 848 Cr Net

Mumbai, June 18: | Updated: Jun 19 2003, 05:30am hrs
Standard Chartered Bank (StanChart) has posted a net profit of Rs 848.3 crore. While the net income stood at Rs 1,694 crore, the cost-income ratio is at 34 per cent. The result figures are not comparable to the previous fiscal as StanChart was officially merged with ANZ Grindlays in October 2002. In 2001-02, StanChart had posted a net profit, while ANZ Grindlays had reported a net loss.

Said StanChart CEO Christopher Low: The banks results have given a clear indication that the Grindlays integration has been a success. There has been excellent growth in our consumer banking segment, with the launch of new products and services in transactional banking and supply chain financing.

Total assets of the bank were Rs 29,300 crore and the ratio of non-performing assets (NPAs) to net advances stood at 0.31 per cent. Mr Low added: The highlight of the year was the control of risk, with asset quality remaining strong.

Said StanChart CFO-Indian region Sanjeev Agarwal: We have focussed on driving revenues from both existing and new business opportunities, increasing cost efficiencies and productivity. The results reflect that the business momentum is very strong, with the consumer and wholesale banking businesses having performed well.

The banks mortgages and personal loan business has surpassed Rs 2,000 crore mark, with mortgage finance contributing around Rs 200 crore every month in the past year. We see mortgage financing as a very strong business in the retail segment, added Mr Low.

In the fiscal gone by, the banks retail business has contributed close to 40 per cent to its profits before tax. In the global markets, StanChart ended the year at the number one position in INR interest rate derivatives with a 20 per cent of market share by volume.

On another note, StanCharts business process outsourcing (BPO) business has expanded hugely in the last two years. Said Mr Low: With BPO, there is an extra value generated for banks with cross border transactions. The BPO business has been an unexpected success for us.

The bank has employed over 2,500 employees since 2001 and is expecting further expansion. Said Mr Low: We currently have around 2,700 employees in the BPO department and are expecting this number to grow to 3,500 by year end.

The bank, in addition to its BPO centre in Chennai, also has a backup BPO office 40 kms outside the city in case of malfunction. Moreover, there is another backup BPO centre in Malaysia.

Said Mr Low: We have set up a BPO centre in Malaysia, which acts as an alternative arrangement for our Chennai centre and vice versa. We chose to set up a BPO centre in Malaysia because of the availability of Chinese speaking people and as a disaster recovery plan.