Indian Bank (INDIANB) Q4 08/09 earnings summary

Executive summary

• FY09 global business reached Rs.124,413 crore, up 22.85% YoY; 101 branches opened, taking the domestic network to 1,642.

• Net profit rose 23.45% to Rs.1,245.32 crore; operating profit grew 34.32% to Rs.2,228.83 crore.

Financial highlights

• Total income increased to Rs.7,865.77 crore from Rs.6,218.67 crore; interest income rose 31.03% to Rs.6,830.33 crore.

• Net interest income advanced 27.00% to Rs.2,608.52 crore; other income was Rs.1,035.44 crore, up 2.96% YoY.

• Interest expense rose 33.64% to Rs.4,221.81 crore; operating expenses increased 1.06% to Rs.1,415.13 crore.

• Profit before tax was Rs.1,786.10 crore versus Rs.1,234.98 crore; profit after tax was Rs.1,245.32 crore versus Rs.1,008.74 crore.

Outlook and guidance

• FY10 district credit plans total Rs.22,075.20 crore, 17.43% above the FY09 plan.

• Further branch expansion was planned, alongside continued focus on customer service, business growth and profitability.

• Wealth Management Services, piloted in Chennai in Feb 2009, were intended for rollout to other potential centres later in 2009 after the pilot stabilised.