Standard Chartered has suffered a setback in India, its star market last year, with inflation, lower business confidence and increased local competition dampening growth.
The emerging markets bank said that Indian income was down in the first half of 2011, compared with the same period last year.
Difficulties in the country, where Standard Chartered became the first foreign company to list its shares last year, contrasted with strong growth in Singapore, Indonesia and China, the bank said in a trading statement ahead of its half-year results.
However, India will continue to be a significant market, it said.
Shares in the bank jumped 41p, or 2.7 per cent, to £15.81 as it painted an upbeat picture of continued buoyancy, owing to its almost exclusive exposure to