Indian Bank (INDIANB) Q4 15/16 earnings summary

Executive summary

• FY2015-16 global business rose 4.31% to ₹310,918 crore; operating profit was ₹3,032.09 crore and net profit fell to ₹711.38 crore from ₹1,005.17 crore.

• Deposits grew 5.35% to ₹178,286 crore, while gross advances rose 2.95% to ₹132,632 crore; asset quality weakened, with gross NPA at 6.66%.

Financial highlights

• Total income increased 4.70% to ₹18,025.20 crore; interest income was ₹16,243.79 crore and other income ₹1,781.42 crore.

• Operating expenses rose to ₹3,195.51 crore from ₹2,810.92 crore; total expenditure increased 5.57% to ₹14,993.11 crore.

• NIM was 2.33%; operating profit edged up to ₹3,032.09 crore from ₹3,013.71 crore, while net profit declined to ₹711.38 crore.

• CASA deposits grew 14.81% YoY to ₹55,153 crore; retail deposits were about 83% of total deposits.

Outlook and guidance

• FY2016-17 growth expectations rested on a normal monsoon, stronger rural demand, government reforms and improved investment conditions; no numeric business growth target was stated.

• Strategic priorities: grow retail and mid-corporate lending, with MSME, agriculture and housing loans as drivers; digitize processes to improve efficiency and lower operating costs.