Bank of India (BANKINDIA) Q4 05/06 earnings summary

Executive summary

• FY06 global business rose 18.14% to Rs.160,594 crore; net profit more than doubled to Rs.701.44 crore, supported by higher core income and improved NPA recoveries.

• Domestic credit growth, retail, SME and agricultural lending expanded, while technology upgrades and overseas expansion remained strategic priorities.

Financial highlights

• Net interest income rose 17.66% to Rs.2,631.98 crore; non-interest income was Rs.1,184.38 crore, including Rs.114.09 crore profit on securities sales versus Rs.180.23 crore in FY05.

• Operating profit increased 16.49% to Rs.1,701.22 crore; excluding securities-sale gains, it rose 23.98% to Rs.1,587.13 crore.

• Net profit increased 106.28% to Rs.701.44 crore; excluding securities-sale gains, net profit was Rs.587.35 crore, up 267.50%. EPS rose to Rs.14.39 from Rs.6.98.

• Deposits rose 19.17% to Rs.93,932 crore and gross credit rose 16.71% to Rs.66,662 crore; total business reached Rs.160,594 crore.

• Net worth increased 13.24% to Rs.4,577.26 crore; book value per share rose to Rs.93.77 from Rs.82.93.

Outlook and guidance

• FY06-07 outlook was positive, citing strong economic growth, industrial recovery, investment pickup and infrastructure development as lending opportunities.

• Growth focus remained on agriculture, retail and SME lending, with an ambitious business plan aimed at increasing market share.

• Core Banking Solution rollout was planned to reach 900 branches by Dec. 2006; overseas presence was slated for expansion, including planned offices in Doha, Beijing, Antwerp and Johannesburg.