Indian Bank (INDIANB) Q4 14/15 earnings summary

Executive summary

• FY15 global business reached ₹298,056.96 crore, up 3.99% YoY; net profit fell to ₹1,005.17 crore from ₹1,158.95 crore.

• Operating profit rose 3.90% to ₹3,013.71 crore, while gross and net NPA ratios increased to 4.40% and 2.50%, respectively.

Financial highlights

• Total income increased 3.58% to ₹17,216.28 crore; interest income was ₹15,852.93 crore and net interest income rose 2.31% to ₹4,461.28 crore.

• Interest expense rose 4.62% to ₹11,391.65 crore; operating expenses declined to ₹2,810.92 crore from ₹2,831.50 crore.

• Net profit was ₹1,005.17 crore versus ₹1,158.95 crore; EPS declined to ₹21.62 from ₹26.07.

• Global deposits grew 4.28% to ₹169,225.27 crore and gross advances rose 3.60% to ₹128,831.69 crore; credit-deposit ratio was 76.13%.

Outlook and guidance

• FY16 growth prospects were expected to benefit from domestic consumption, improving confidence, economic reforms and infrastructure investment; subdued exports and a potentially weak monsoon remained concerns.

• Strategic focus remained on technology-led products and growth in MSME, priority-sector and retail credit, with improved profitability and shareholder value as objectives.