Bloomberg News

Standard Chartered Says India Faces Slowing Domestic Demand

November 15, 2011

Nov. 15 (Bloomberg) -- Standard Chartered Plc, the U.K.’s second-largest bank by market value, said its business in India faces threats from “slowing domestic demand” and rising inflation.

The lender, which earns most of its profit in Asia, also said “governance concerns” are among its “short-term challenges” in India, according to a presentation to analysts published today on its website.

The shares fell as much as 3.4 percent in London trading and were 2.2 percent lower at 1,327 pence at 12:41 p.m. London time.

The bank’s comments showed “a few uncharacteristic notes of caution,” Evolution Securities Ltd. analyst Ian Gordon wrote in a note to clients today.

The bank is seeing early signs that some international competitors are withdrawing from its markets, Jaspal Bindra, the head of Standard Chartered’s Asian operations, said on Nov. 3. Wholesale banking operating profit for India fell 42 percent to $334 million for the first half, according to results published on Aug. 3.

--Editors: Keith Campbell, Stephen Taylor.

To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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