Bank of India (BANKINDIA) Q4 96/97 earnings summary

Executive summary

• FY1996-97 net profit rose 30.4% YoY to Rs.360 crore; total income increased to Rs.4,004 crore from Rs.3,311 crore.

• Global deposits reached Rs.31,973 crore, up 16.2%, and global advances reached Rs.18,337 crore, up 17.6%.

• Profitability gains were attributed to lower-cost deposits, improved credit quality, reduced reliance on high-cost borrowings, cost control and growth in fee income.

Financial highlights

• Interest earned increased to Rs.3,513 crore from Rs.2,890 crore; other income rose to Rs.490 crore from Rs.421 crore.

• Interest expense increased to Rs.2,373 crore from Rs.1,938 crore; operating expenses rose to Rs.1,051 crore from Rs.899 crore.

• Operating profit in Indian operations increased to Rs.457 crore from Rs.354 crore; domestic net profit rose to Rs.248 crore from Rs.204 crore.

• Global investments stood at Rs.10,671 crore at March 1997; treasury operations contributed 25% of total earnings.

Outlook and guidance

• Detailed operational plans through 2002 were prepared, with restructuring focused on target markets, delegated decision-making and new regional and corporate offices.

• Plans included further expansion in emerging financial centres and continued improvement in customer service, technology and specialist banking.

• The Board declared a 15% pro-rata dividend for FY1996-97; payment was scheduled within six weeks of the AGM.