Company Profile

Standard Chartered Bank – India Operations

Brief Overview – Standard Chartered Bank, India

• Started Operations in India on April 12, 1858• Current headquarters - Mumbai • SCB India (SCBI or the Bank) is a privately held branch of Standard Chartered Bank

UK, which is part of the Standard Chartered PLC, a London based Banking Group• India's largest international bank with a strong footprint – 100 branches and 279 ATMs across 43 cities Combined Customer Base – 2 million retail customers and more than 2,500

corporate and institutional relationships Number of Employees - 18,000• As of latest reported financial year-end (March 31, 2015), the Bank managed a

growth in its total income by 4% y-o-y and profit before tax rose up by 93% y-o-y

Source: Company Websites – Standard Chartered PLC, Standard Chartered Bank – India Branch, Annual Report 2014-2015

Board and ManagementZarin Daruwala,Chief Executive Officer,Standard Chartered Bank, India

Anurag Adlakha,Chief Financial Officer/Acting CEO, India

Ajay Kanwal, Chief Executive Officer, ASEAN & South Asia Region,Standard Chartered Bank, UK

Source: Company Website - Standard Chartered Bank – India Branch,

Organization Structure• Effective July 15, 2015, the Group reorganised its corporate structure with

a view to cut costs and improve efficiency• Four regional businesses three client businesses, which will report to

Group CEO Bill Winters.• The Asia-focused lender aims – Simplification of its geographic and client segment structure to reduce

costs and bureaucracy and speed up decision making To deliver the previously announced US$1.8bn (£1.2bn, €1.7bn) of cost

savings by the end of 2017."

Group Chief executive

Greater China & North Asia

ASEAN & South Asia

Africa & Middle East

Europe & Americas

Australia • Bangladesh • Brunei • Cambodia • India • Indonesia • Laos • Malaysia • Myanmar • Nepal • Philippines • Singapore • Sri Lanka • Thailand • Vietnam

Company HierarchyStandard Chartered Plc

(Ultimate Parent Company)

Standard Chartered Holding Ltd.(Parent Company)

Standard Chartered Bank, UK(Head Office)

Standard Chartered Bank, India(Branch)

Source: Company Annual Report 2014-2015

SubsidiariesStandard Chartered Bank,

India

Standard Chartered Securities (India) Ltd

Standard Chartered Private Equity Advisory (India) Private Limited

Standard Chartered Investments and

Loans (India) Limited.

Source: Company Annual Report 2014-2015

Operations & Segments

Operational highlights in 2015

• Total Income (net of interest expense) at ` 88.65 billion - up 4 per cent

• Profit Before Tax at ` 46.99 billion: up 93 per cent• Profit after Tax at ` 30.51 billion: up 93 per cent• Net NPA ratio: 0.34 per cent• Provision Coverage Ratio: 97 per cent• CET1 ratio improved from 10.5 per cent to 11.8

per cent

Source: Company Annual Report 2014-2015

Group Financial Performance(` in 000s)(Figures in Rupees)

Year Ended March 31, 2015

Year Ended March 31, 2014

Year-on Year Change (%)

Interest Earned 101,420,187 99,790,881 1.63Other Income 32,819,620 31,454,003 4.34Gross Revenue 134,239,807 131,244,884 2.28Interest Expended 45,588,921 45,925,233 (0.73)Operating Expenses 29,519,457 32,050,639 (7.8)Operating Profit 46,993,948 24,339,215 93.08Income Taxes (16,479,475) (8,498,085) 93.91Net Profit 30,514,473 15,841,130 92.63Total Assets 1,317,396,763 1,310,009,638 0.56

Total Liabilities 1,317,396,763 1,310,009,638 0.56Depreciation 863,100 995,129 (13.27)Net Interest Margin 55831266 53865648 18.39

Non Performing Advances(` in 000s of INR) Year Ended

March 31, 2015Year Ended March 31, 2014

Year-on Year Change (%)

Sub Standard 10,748,560 15,412,643 30.26

Doubtful 28,560,066 15,982,002 78.70

Loss 27,255,174 26,431,823 3.11

Gross NPAs 66,563,800 57,826,468 15.11Provisions (64,257,397) (54,762,994) 17.34

Net NPAs 2,306,403 3,063,474 (24.71)

Cover ratio (%) 96.54% 94.70%Gross NPAs to gross advances (%)

8.90% 7.82%

Net NPAs to net advances

0.34% 0.45%

Risk weighted assets and contingents

(` in 000s)(Figures in Rupees)

Year Ended March 31, 2015

Year Ended March 31, 2014

Year-on Year Change (%)

Credit risk 1,465,920,821 1,249,157,572 17.35

Market risk (including counterparty/settlement risks)

110,610,068 92,558,872 19.50

Operational risk - Basic indicator approach

133,350,593 121,726,154 9.55

Total Risk weighted assets and contingents

1,709,881,482 1,463,442,598 16.84

Capital ratios

Ratios (in %) Year Ended March 31, 2015

Year Ended March 31, 2014

Common Equity Tier 1 capital

12.6 10.52

Tier 1 capital 14.1 11.4Tier 2 capital 5.4 5.3

Total capital 19.5 16.7

Key Client Segments

• Corporate & Institutional Clients – Leverage our geographic spread to capture cross-border flows into and out of

the country Enhance client cross-sell by expanding the products offered Focus on flow business & Balance sheet management

• Commercial & Private Banking Clients 6,000 client relationships in Commercial Banking Largest foreign bank in India in this space Facilitate projects and assist in Social-funding (Brij Healthcare and Research

centre and Kolkata Comprehensive Eye Care Project)

• Retail Clients

Since April 1, 2014, The Group’s two businesses, Wholesale Banking and Consumer Banking, have integrated to form one business, organized into the following three customer segment groups and serviced by five global product groups -

Product Offerings

• Retail Deposits Savings Mortgages Credit cards

and personal loans

Other retail banking products

• Wealth Management Managed investments Insurance Currency Securities

• Transaction BankingCash management (Payments

& Collections)Trade Solutions & Money

TransfersSecurities holdings productsTrade finance products

• Corporate Finance Financing Strategic Advice Mergers and Acquisitions Equity and principal financing

• Financial Markets Investment services Risk management Debt capital services

End Markets Served by Product

Transaction Banking - Insurance, Pharma,

Electronics, Aerospace,

Corporate Finance - Beverages, Utilities,

Food Processing

Commercial Clients – Chemicals, Auto

Components, Commercial Real Estate, Infrastructure,

Pharma, Construction & Engg and Electricals

Private Banking –Provides tailored services around 1400 families and 4200 clients across Mumbai, Delhi, Bangalore, Kolkata and Chennai

Recent Corporate & Institutional Client (CIC) Coverage

Segmental Performance

As per the latest financial year-end annual figures, the financial data have been reported into the following 4 segments –

•Treasury Services•Wholesale Banking•Retail Banking•Others

Treasury ServicesTreasury activities include foreign exchange, fixed income, money market and derivative transactions

(` in 000s of INR) Year Ended March 31, 2015

Year Ended March 31, 2014

Year-on Year Change (%)

Gross Segment Revenue

42,521,009

36,664,273

15.97

Net Segment Revenue

39,357,477

35,350,156

11.34

Net Segment Results 35,577,962

29,814,689 19.33

Segment Assets 570,971,472 586,368,083 (2.62)

Segment Liabilities 372,368,699 380,498,971 (2.14)

Wholesale Banking• Includes Local corporate financing• Corporate Advisory • All advances to trusts, partnership firms companies and statutory bodies, which are not

included under the “Retail Banking” segment

(` in 000s) Year Ended March 31, 2015

Year Ended March 31, 2014

Gross Segment Revenue

Net Segment Revenue

Net Segment Results

Segment Assets

Segment Liabilities

(` in 000s of INR) Year Ended March 31, 2015

Year Ended March 31, 2014

Year-on Year Change (%)

Gross Segment Revenue

66,706,255 64,676,706 3.14

Net Segment Revenue

32,418,033 27,173,002 19.30

Net Segment Results 8,616,462

(9,346,645) 192.19

Segment Assets 528,104,651 497,735,423 6.10

Segment Liabilities 479,561,186 446,004,532 7.52

Retail Banking• Serving retail customers through the branch network and other delivery channels.• Raising deposits from customers and makes loans and provides other services to

such customers• Activities relating to credit cards, debit cards, mortgage loans, third party product

distribution and their associated costs

(` in 000s of INR) Year Ended March 31, 2015

Year Ended March 31, 2014

Year-on Year Change (%)

Gross Segment Revenue

24,968,123 28,071,683 (11.06)

Net Segment Revenue

18,158,319 21,679,614 (16.24)

Net Segment Results 3,274,332

4,612,147 (29.01)

Segment Assets 166,454,474 178,528,912 (6.76)

Segment Liabilities 458,635,988 476,781,527 (3.80)

Other Operations

(` in 000s of INR) Year Ended March 31, 2015

Year Ended March 31, 2014

Year-on Year Change (%)

Gross Segment Revenue

44,420 1,832,222 (97.58)

Net Segment Revenue

(1,282,943) 1,116,879 (214.86)

Net Segment Results (474,808)

740,976 (164.08)

Income Taxes (16,479,475) (8,498,085) 93.92

Segment Assets 51,866,166 47,377,220 9.47

Segment Liabilities 6,830,890 6,724,608 (3.80)

Capex toacquire Fixed Assets

676,256 686,810 (1.54)

Depreciation 863,100 995,129 (13.26)

Others include Corporate Real Estate Services and other items not allocable in the aforementioned segments

Key Current Issues• Large Credit Risk – $5 billion of domestic lending classified as

at risk of defaulting • Lower Income in the Retail Banking owing to reduction in

interest rates by Reserve Bank of India (RBI)• Rising loan impairments - (a 475 % increase since H2 2013) as

shown below (excluding restructuring charge)• Reduced Portfolio Exposure in Corporate & Institutional and

Commercial Banking (Total exposure US$30bn, down 13% YoY)

Key Current Issues - Loan Impairments & Reduced Exposure

H2 2013

H1 2014 H2 2014 H1 2015 H2015 Trend

Loan Impairments (in US $ millions)

82 56 115 483 472 475% increase in loan impairments since H2 2013

Growth in Loan Impairments (%)

- 31.7 % 105% 320% (2.2%)

CIB/CB exposure 42.0 37.7 34.7 34.9 30.2 28 % decrease in exposure since H2 2013

Trend in Exposure - (10.23 %) (7.96 %) 0.57 % (13.47 %)

Key Current Issues• Stress Tests – The Bank’s Parent was found to be weak as per the results

of its latest U.K. bank stress test held last December. As a result, further structural capital raisings are more likely to be curtailed

• Low refinancing appetite from local banks thus reducing lending and income

• Increase in provisioning, largely to reflect lower commodity prices as well as further deterioration in India

Website Link Citations• https://www.sc.com/in/about-us/en/about-us.html• https://www.sc.com/en/about-us/standard-chartered-worldwide/asia/in

dia.html• https://www.sc.com/uk/contact-us/• https://www.sc.com/en/news-and-media/news/asia/2015-10-17-Zarin-

Daruwala-appointed-CEO-India.html• http://www.ibtimes.co.uk/standard-chartered-rejigs-organisation-

structure-cut-down-regions-4-1511613• http://www.livemint.com/Companies/RPIgMyNZ6WnLbrihkoOt7I/

Standard-Chartered-names-Zarin-Daruwala-as-new-India-CEO.html• https://www.sc.com/en/news-and-media/news/global/09-01-2014-

reorganisation-and-changes.html