Indian Bank (INDIANB) Q4 04/05 earnings summary

Executive summary

• FY 2004-05 operating profit rose 19.4% to ₹958.07 crore; net profit was ₹408.49 crore versus ₹405.75 crore YoY. Total business reached ₹53,689 crore, up 18.31%.

• Net NPAs fell to 1.35% of net advances from 2.71%; capital adequacy improved to 14.14% from 12.82%.

• Growth centered on lending, especially agriculture, priority sectors, SSI/SME and SHGs, alongside technology upgrades and a broader service reach.

Financial highlights

• Total income was ₹3,439.47 crore versus ₹3,414.25 crore; interest earned ₹2,870.66 crore versus ₹2,666.92 crore, while other income declined to ₹568.82 crore from ₹747.33 crore.

• Net interest income increased to ₹1,303.65 crore from ₹1,117.06 crore; net profit was ₹408.49 crore versus ₹405.75 crore.

• Total deposits rose 14.3% to ₹34,808 crore; gross advances increased 26.42% to ₹18,881 crore and net advances to ₹18,380 crore.

• Investment income was ₹1,436.08 crore; investment holdings increased 7.28% to ₹17,891.96 crore during FY 2004-05.

Outlook and guidance

• For FY 2005-06, India real GDP growth was projected at 7.0%, inflation at 5.0–5.5%, and M3 growth at 14.5%.

• Scheduled commercial bank deposits were expected to grow over 15%; non-food bank credit, including non-SLR investments, was projected to rise around 19%.

• The operating plan included scaling core banking to more branches during FY 2005-06 after implementation at two Chennai branches in FY 2004-05.