Indian Overseas Bank (IOB) Q4 01/02 earnings summary

Executive summary

• FY01/02 operating profit reached a record ₹616.36 crore, up 101% YoY; net profit rose to ₹230.21 crore from ₹115.93 crore.

• Global deposits rose to ₹31,808.5 crore and net advances to ₹15,162.3 crore; proposed dividend was 12%.

Financial highlights

• Total income increased to ₹3,701.48 crore from ₹3,095.83 crore; interest income was ₹3,170.69 crore and other income ₹530.80 crore.

• Interest expense rose to ₹2,200.62 crore from ₹1,912.67 crore; operating expenses were ₹884.51 crore, versus ₹876.56 crore.

• Net provisions and contingencies were ₹386.15 crore, including ₹35.79 crore of deferred tax liability; prior-year provisions were ₹190.67 crore.

• Net profit was ₹230.21 crore after provisions, versus ₹115.93 crore; EPS was ₹5.18.

Outlook and guidance

• FY02/03 priorities: build low- and zero-cost deposits through customer-base expansion, focus lending on retail credit, generate adequate profit and strengthen the balance sheet.

• Economic outlook cited Indian growth of 6–6.5%, inflation slightly below 4% and M3 growth of 14% for FY02/03.