Bank of India (BANKINDIA) Q4 12/13 earnings summary

Executive summary

• Global business mix reached ₹674,808 crore at 31 Mar 2013, up 18.45% YoY; operating profit rose 11.42% to ₹7,458.50 crore, while net profit grew 2.67% to ₹2,749.35 crore.

• Growth came amid a challenging domestic economy and tighter regulatory requirements; deposits and gross advances expanded 19.99% and 16.49%, respectively.

Financial highlights

• Net interest income increased 8.55% to ₹9,024 crore; non-interest income rose 13.37% to ₹3,766 crore, covering 70.64% of operating expenses versus 67.23% in FY11-12.

• Total income was ₹35,674.97 crore; operating expenses rose 7.92% to ₹5,331.55 crore and provisions/contingencies increased 17.24% to ₹4,709.15 crore.

• Deposits reached ₹381,840 crore, up 19.99%; gross advances rose 16.49% to ₹292,968 crore. CASA deposits were ₹93,800 crore, with a 32.79% CASA ratio.

• EPS was ₹47.79 versus ₹48.98; book value per share increased to ₹362.37 from ₹326.52.

Outlook and guidance

• FY13-14 baseline Indian GDP growth was projected at 5.7%; WPI inflation was expected near 5.5%, subject to a normal monsoon, stable exchange rates and commodity prices.

• Domestic activity was expected to improve modestly, with a potential H2 pickup; stalled projects, weak industrial investment and sluggish services and exports remained constraints.

• Banking-industry FY13-14 projections called for 15% YoY non-food credit growth and 14% deposit growth; these were industry estimates, not earnings guidance.