Indian Bank (INDIANB) Q4 10/11 earnings summary

Executive summary

• FY11 global business rose 20.3% to ₹181,530 crore; operating profit increased 19.8% to ₹3,291.68 crore and net profit rose 10.2% to ₹1,714.07 crore.

• Deposits grew 19.9% to ₹105,804 crore and gross advances rose 20.9% to ₹75,726 crore; net interest margin improved to 3.75%.

• Growth priorities included expanding domestic and overseas reach, improving asset quality and building capital ahead of Basel III implementation from 2013.

Financial highlights

• Total income rose 16.8% to ₹10,542.92 crore; interest income increased 21.4% to ₹9,361.02 crore and other income was ₹1,181.89 crore.

• Net interest income increased 27.7% to ₹4,036.12 crore; core non-interest income rose 26.7% to ₹905.65 crore.

• Interest expense rose 16.9% to ₹5,324.92 crore; operating expenses increased 11.3% to ₹1,926.31 crore and provisions and contingencies were ₹1,577.61 crore.

• Net worth reached ₹8,326.55 crore, up 18.16%; EPS was ₹38.79 versus ₹35.09 and book value per share was ₹184.44 versus ₹154.66.

• NPA recoveries, including AUC, totaled ₹756.58 crore versus ₹587.48 crore in FY10; proposed equity dividend was ₹7.50 per share.

Outlook and guidance

• FY12 total-business target: ₹225,000 crore, with domestic and international expansion and continued focus on growth with quality.

• Planned to strengthen capital for business expansion and anticipated Basel III requirements; proposed FPO and preference-share conversion remained subject to approvals.