While several public sector banks have managed to bring down the NPAs last year, Stanchart's net NPAs as a percentage of advances have shot up to 3.18 per cent from 2.42 per cent. The capital adequacy ratio of the bank also dipped to 8.3 per cent from 9.3 per cent. On the bank's increase in NPA, StanChart (India) head-corporate & institutional banking, Jaspal Bindra, said that "the increase should be seen in the light of growth in advances by 28 per cent. And further that bank had adopted a more stringent approach to NPAs".

During the year, deposits grew by 11 per cent to Rs5,352.64 crore from Rs 4,801.71 crore in 1998-99 while advances went up by 28 per cent to Rs 3,381.21 crore from Rs 3,179.73 crore. As a percentage of working funds, operating profit stood at 3.47 per cent (2.80 per cent); non-interest income at 2.93 per cent (3.38 per cent) with interest income at 11.93 per cent (11.55 per cent). Return on assets improved to 3.12 per cent (2.63 per cent).

However, StanChart India's chief executive Martin Fish sounded optimistic about the bank's performance, calling it ``a year of real achievement''. ``We are now better prepared that ever to meet the challenges in the market place. We are much leaner and fitter, and we have continued our investments in new products, technology and infrastructure. Our customer service culture and operational platforms are also getting stronger. The bank is well placed now to compete in the India market place,'' Fish said here in a news conference.

According to Fish, one of the significant achievements of the bank during the year was thatcosts went down as it closed down three branches and replaced human capital with advanced technology. StanChart (India) has 19 branches in the country following closure of its three branches in Amritsar, Calicut and Vasco-da-gama.

StanChart (India) has also applied for new branch licences with the Reserve Bank. During the current financial year, the bank will activate its electronic banking & payment services, offer interest rate swaps and go in for more affinity and co-branded cards.