Indian Bank (INDIANB) Q4 09/10 earnings summary

Executive summary

• Global business reached Rs.150,886 crore at 31 Mar 2010, up 21.28% YoY; net profit rose 24.87% to Rs.1,554.99 crore.

• Operating profit increased 33.64% to Rs.2,747.35 crore; NIM rose to 3.71% from 3.54%.

• Network expansion continued with 114 branches opened in FY10; the domestic network reached 1,756 branches and 1,005 ATMs.

Financial highlights

• Total income was Rs.9,030.78 crore; interest income grew 15.03% to Rs.7,857.06 crore and other income rose 13.33% to Rs.1,173.72 crore.

• Net interest income increased 26.66% to Rs.3,303.88 crore; interest expense rose 7.85% to Rs.4,553.18 crore.

• Operating expenses increased 8.95% to Rs.1,730.25 crore; provisions and contingencies were Rs.1,192.36 crore, up 47.11% YoY.

• EPS was Rs.35.09 versus Rs.27.96; book value per share was Rs.154.66.

Outlook and guidance

• Plans to continue opening more than 100 branches annually, alongside customer-service improvements, business growth and better profitability.

• FY11 annual credit-plan projections for lead districts were Rs.25,309.80 crore, 14.65% above the FY10 target.