The South Indian Bank (SOUTHBANK) Q4 99/00 earnings summary

Executive summary

• Net profit rose 325% YoY to Rs.25.89 crore; operating profit increased 128% to Rs.80.27 crore, supported by sharply higher treasury gains.

• Deposits grew 24.43% to Rs.3,885.36 crore and advances rose 21.41% to Rs.2,021.08 crore by 31 March 2000.

• Net NPAs declined to 8.67% of net advances from 11.06%; capital adequacy was 10.41%, above the 9% regulatory benchmark.

Financial highlights

• Total income was Rs.543.49 crore versus Rs.436.79 crore in FY1998-99; interest earned was Rs.468.94 crore and other income Rs.74.56 crore.

• Net profit was Rs.25.89 crore versus Rs.6.08 crore; operating profit was Rs.80.27 crore versus Rs.35.18 crore.

• Interest expense increased to Rs.350.72 crore from Rs.311.78 crore; operating expenses rose to Rs.112.50 crore from Rs.89.83 crore.

• Provisions and contingencies totaled Rs.54.38 crore, including Rs.25.41 crore for NPAs, Rs.19.69 crore for income/wealth tax, Rs.4.68 crore for interest tax and Rs.4.60 crore for standard assets.

Outlook and guidance

• Banking outlook was described as favorable amid liberalization; the bank aimed to grow current and savings deposits to reduce funding costs.

• Planned computerization of all branches within four years, with major city branches and offices to be interconnected and a centralized data center targeted within five years.

• A regional office at Kottayam was planned; the bank also held licenses to open four additional branches.