StanChart India posts Massive loss
Standard Chartered Bank (StanChart), the largest foreign lender in India in terms of branches, has posted a loss in 2015 due to rising bad loans and slow growth in loans and deposits.This has dragged the bank’s overall results down to their lowest level since 1989. StanChart India reported a loss before tax of Rs 6,729 crore ($981 million) in 2015, against a profit of Rs 3,848 crore ($561 million) in 2014.
This was mainly caused by a steep increase in impairment losses on loans and other credit risk provisions that jumped almost eight times to Rs 9,198 crore ($1341 million) from Rs 1,173 crore ($171 million) a year ago.At the global level, the bank said its the pre-tax loss was Rs 10,288 crore ($1.5 billion) in 2015, down from profit of Rs 28,808 ($4.2 billion) a year earlier.
“Corporate and commercial clients’ loan impairment increased significantly to Rs 21,949 crore ($3.2 billion). We have reviewed the portfolio through 2015 and have increased provisioning, largely to reflect lower commodity prices as well as further deterioration in India,” the bank said in its annual report.