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StanChart Books 40% Hike In Quarterly Profit, Income Outlook Improves

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According to StanChart, the statutory pre-tax profit saw a rise to 1.39 billion dollar for three months ending 30 September as compared to 996 million dollar in previous year. It also went up against 1.05 billion dollar average estimate of 14 analysts, as compiled by the bank. StanChart’s weakness too reflected in key economies after the statutory credit impairment charges more than doubled to 227 million dollar from previous year

With a gain from a sharp rise in income on higher interest rates, Standard Chartered recorded an increase in of 40 per cent in its quarterly profit.

The better outlook of the emerging markets-focused bank for the year came from its improved performance and rising revenues from interest rates. It is now expecting a rise in income by 13 per cent instead of a previous forecast of 10 per cent.

According to StanChart, the statutory pre-tax profit saw a rise to 1.39 billion dollar for three months ending 30 September as compared to 996 million dollar in previous year. It also went up against 1.05 billion dollar average estimate of 14 analysts, as compiled by the bank.

CEO, Bill Winters in a statement said, that StanChart remains confident to deliver their 2024 financial targets.

StanChart’s weakness too reflected in key economies after the statutory credit impairment charges more than doubled to 227 million dollar from previous year.

It marks its presence in 59 markets with around 85,000 staff. The lender, which earns most of its revenue in Asia, majorly depends on catering trade flows between its key markets of Asia, Africa and the Middle East. However, not in the race of larger rivals in commercial banking and investment banking.

Normally, increasing rates boosts bank profits as it allows them to book more from lending than the sums they pay to savers. However, currently threat of an economic downturn is hovering that may cause big losses for lenders.

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RBI Slaps Penalty Of Rs 1 Cr On SBI, Rs 1.95 Cr On Stanchart

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Fine levied on SBI for non-compliance with the directions contained in ‘Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016’

The Reserve Bank of India (RBI) on Monday imposed a monetary penalty of Rs 1 crore on the country’s biggest lender State Bank of India (SBI) and a Rs 1.95 crore fine on Standard Chartered Bank for the violation of various guidelines. Fine levied on SBI for non-compliance with the directions contained in ‘Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016’, the RBI said in a statement.

In a separate statement, the RBI imposed a Rs 1.95 crore penalty on Standard Chartered Bank for non-compliance of the directions issued by the RBI on ‘Customer Protection Limiting Liability of Customers in Unauthorised Electronic Banking Transactions’, ‘Cyber Security Framework in Banks’, ‘Credit Card Operations of banks’ and Code of Conduct in Outsourcing of Financial Services by banks’ among others, the central bank said in a statement.

These monetary penalties have been imposed in exercise of powers vested in RBI under the Banking Regulation Act, 1949, it said. These actions are based on the deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, it added.

After considering replies from both banks to the notices, oral submissions made during the personal hearing, and additional submissions made by the lenders, it said, the RBI came to the conclusion that the charge of contravention of/ non-compliance with various norms. The RBI directions were substantiated and warranted imposition of monetary penalty on these lenders, to the extent of non-compliance, the statement said.

(PTI)