The Hindu Business Line : Fine pulls StanChart net down to Rs 596 cr

STANDARD Chartered Bank has registered a 30 per cent drop in net profit for the year ended March 2004 to Rs 596 crore, down from Rs 848 crore in the previous year due to the hefty fine of Rs 157 crore that the bank had been slapped with relating to the 1992 securities scam.

Despite the drop in profits, the bank is still the highest profit making foreign bank in the country, with Citibank the closest competitor clocking a net profit of Rs 571 crore for March2004.

The bank also saw its tax payout increase to Rs 255 crore this year, up from Rs 84 crore in the previous year when it had enjoyed tax benefits as a result of some appeals relating to the securities scam being in favour of it, said Mr Sanjeev Agrawal, CFO, Standard Chartered Bank, India Region.

The bank's total income rose 27 per cent to Rs 2,152 crore up from Rs 1,694 crore. The profits have come from both growth in retail lending activities, fee income and treasury income.

The bank's advances grew by 24 per cent to Rs 16,152 crore, about 45 per cent of which is retail and the remaining is corporate.

Over the years, the book has tilted towards retail and the ratio is expected to be 50-50 by March 2005, said Mr Agrawal.

The bank's net NPA ratio is healthy at 0.52 per cent. The bank with a 2.4 million in retail banking and over 800 major corporate relationships expects growth in retail and corporate banking business.