The South Indian Bank (SOUTHBANK) Q4 02/03 earnings summary

Executive summary

• FY02-03 total business exceeded ₹10,000 crore; deposits rose to ₹6,861 crore and advances to ₹3,613 crore. Net profit reached ₹72.33 crore.

• Results advanced despite macroeconomic stress, credit recovery challenges and pressure on banking spreads.

Financial highlights

• Total income ₹837.73 crore vs ₹754.01 crore; net profit ₹72.33 crore vs ₹62.41 crore, up 16% YoY.

• Operating profit rose 25% to ₹216.47 crore; net worth increased 17% to ₹320.98 crore.

• Deposits grew 16% to ₹6,861 crore; advances rose to ₹3,613 crore from ₹3,231 crore.

• Other income included ₹132.61 crore profit on investment sales vs ₹86.46 crore; investment income was ₹261.57 crore vs ₹235.93 crore.

• Recommended dividend of 25%, same as FY01-02; EPS was ₹20.23 vs ₹17.49.

Outlook and guidance

• Focus on customer service, competitive product pricing, lower cost of funds, productivity and growth in fee-based income.

• Finacle core banking capability expected to improve competitiveness; planned network expansion included ~100 ATMs by FY03-04 end.

• Planned initiatives included a global debit card and internet banking; new products and services were targeted during the Platinum Jubilee year.