StanCharts India operating profit falls 39 in H1

The profit declined due to rising interest rates and increasing competition resulting in falling net interest margins,the bank said.

Project and deal flows have slowed as business sentiment is impacted on the back of governance concerns in the market, it said. The bank,however,is optimistic about Indias growth prospects and said given our strength and competitive position,we are well positioned for the upturn.

However,across the group,Standard Chartered PLC posted an operating profit before tax of 3.64 billion in H1 2011,up from 3.12 billion in the year ago period,a growth of 17 per cent. Wholesale banking and consumer banking saw increased business activity across a number of products and services,as the group captured market share from our competitors, the bank said in a statement.