For the parent, 2015 marked the worst in 26 years with the pre-tax loss of USD 1.5 billion as against a pre-tax profit of USD 4.2 billion in 2014, making India operations contributing close to 60 percent of the losses for the Asia-focused lender as its overall loan impairments doubled to USD 4 billion last year from USD 2.14 billion in 2014.

The bank, in an exchange filing, said loan impairments, including restructured loans, across its India portfolio surged eight-fold to USD 1.34 billion in 2015 from 2014, again contributing over a third of the British banking group's total dud assets.

The bank has massive exposure to some of the very indebted companies, including almost USD 2.5 billion to the Essar Group and recently media reported the bank had classified around USD 5 billion loans to domestic borrowers as on the verge of default.

The bank said the macroeconomic environment in India has been challenging due to slow reforms, high indebtedness in some sectors and a lower-than-expected refinancing appetite of local banks, which has resulted in exposure to stressed corporates getting further impacted.

It also said its recoveries were not satisfactory.

The bank said due to these headwinds, it has brought down its India portfolio to USD 30 billion in 2015 from USD 35 billion in 2014, down from a peak of USD 42 billion in 2012.

The Indian Depository Receipts of StanChart tanked 5 percent to Rs 40 on the BSE, whose benchmark Sensex dropped 1.71 percent.

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