INDIAN BANK
COMPARISON OF RESULTS
FOR 4 YEARS
Indian Bank is one of the Public sector Banks which has been producing excellent Results over the years.
We have already reviewed Indian Bank performance in FY 10 in the following URL.
The Annual report of the Indian Bank is now at hand and the same reveals how it has been progressing during the last 4 years – as below :
As we can see from these details, Indian Bank has been improving on all parameters at a FAST PACE.
Total Business has gone up by almost 100% in 4 years to 1,50,886 Crores, and in next 2 years, a further 40 percent growth is planned by the Bank. The bank might well exceed its target.EPS is very healthy at 35.09 and the same growth rate may continue in future as well.
Net NPA % is quite healthy at 0.23. The Bank is planning to have total coverage of 100 percent for all its NPAs.
The number of Branches has been growing at a very healthy pace in last 4 years ( from 1441 to 1758) and is likely to grow faster in next 2 years. All the Branches are covered by CBS.
On the other hand, the number of employees has been coming down year after year – which shows that the bank is keeping strict tab on the expenses front.
Consequently, the Business per employee – has grown from Rs.364 Crores to Rs.Rs.761 Crores in 4 years.
The net Interest Margin is quite healthy at 3.71.
The Book value per share is growing excellently and stands at Rs.154.66.
Among the many awards that the Indian Bank has received –
One is from the Business world – as the FASTEST GROWING MID SIZE BANK and the SECOND BEST BANK. The magazine sais –“Stock prices of Indian Bank and SBI were on equal footing in terms of price multiples….The Bank is among the best for ANY MEASURE OF EFFICIENCY…ROE,ROA or Cost of Deposits.”
An economic times intelligence group’s first survey on publicly listed banks (dt23.11.09) said – in terms of efficiency and financial strength, Indian Bank ranks among the best.
At the current price of Rs.227, the P/E ratio comes to just 6.47.Surely, a Bank with such consistent performance deserves much better P/E multiple.
In recent Past, salary revision has taken place for all PSBs. Its effect will be around 18-20 percent (salary, perks, pension etc) increase under the salaries head. When you look at the total expenses and the proportion of operating expenses in it, and further the salary expenses proportion in it, it appears that Indian bank can comfortably manage this in its growth of revenue and profits very easily and remain healthier than at present. Since next 4-5 years, salary increases are not due, the PSBs will stride faster in the days to come.
Thus, it appears that among the PSBs, Indian Bank is one of the choicest Picks for medium to long term.
Particulars(In Crs -Rs) | FY07 | FY08 | FY09 | FY10 |
total business | 76593 | 101274 | 124413 | 150886 |
Deposits(Global) | 47091 | 61046 | 72582 | 88228 |
Advances(Glo) | 29502 | 40228 | 51831 | 62658 |
Investments(Gross) | 21156 | 22119 | 23167 | 28544 |
Interest Income | 4195 | 5213 | 6830 | 7857 |
Non-Int Income | 823 | 1005 | 1036 | 1173 |
Total income | 5018 | 6218 | 7866 | 9030 |
interest expenses | 2412 | 3159 | 4222 | 4553 |
Operating expenses | 1247 | 1400 | 1588 | 1730 |
Total Expdr | 3659 | 4559 | 5810 | 6283 |
Operating profit | 1359 | 1659 | 2056 | 2747 |
net profit | 760 | 1009 | 1245 | 1555 |
cost of deposits | 5.15% | 5.85 | 6.27 | 5.66 |
yield on Advances | 9.6 | 10.59 | 11.02 | 10.71 |
Net Int Margin% | 3.57 | 3.45 | 3.54 | 3.71 |
Return on Avg Assets | 1.46 | 1.64 | 1.62 | 1.67 |
Equity | 430 | 430 | 430 | 430 |
Preference Share | 400 | 400 | 400 | 400 |
Reserves | 2792 | 4116 | 5051 | 6217 |
net worth | 3622 | 4946 | 5881 | 7047 |
Gross NPA% | 1.85 | 1.21 | 0.89 | 0.81 |
Net NPA% | 0.35 | 0.24 | 0.18 | 0.23 |
cap.Adq.Ratio-I | 14.14 | 12.74 | 13.27 | 12.16 |
cap.Adq.Ratio-II | 12.9 | 13.98 | 12.71 | |
EPS(Rs) | 20.46 | 22.52 | 27.96 | 35.09 |
BV per share | 74.95 | 98.96 | 127.52 | 154.66 |
Div per share-Rs | 3 | 4 | 5 | 6.5 |
No 0f Branches | 1441 | 1541 | 1644 | 1758 |
Employees | 20892 | 20548 | 19993 | 19641 |
Business/employee | 364 | 488 | 617 | 761 |
ANNOUNCEMENTS
TO THE EXCHANGE
14-06-2010 Indian Bank has submitted to the Exchange a copy of Proceedings of the Annual General Meeting of the Shareholders of the Bank held on June 10, 2010.
03-06-2010 Indian Bank has informed the Exchange that "The Board of Directors of the Bank has, in its meeting held on May 31, 2010, accorded approval for bank's raising Tier II Capital (upper/lower/mix) up to Rs.1000 crore (Rupees one thousand crore only) in one or more tranches during the current year." -
18-05-2010 Indian Bank has informed the Exchange that the Final Dividend for the year 2009-10, if declared in the ensuing Annual General Meeting to be held on June 10, 2010, will be paid on June 23, 2010. Accordingly, the Date of Dividend Warrant will be June 23, 2010. -
29-04-2010 Indian Bank has informed the Exchange that the Annual General Meeting of the Bank will be held on June 10, 2010. Further, the Register of Members and Share Transfer Books of the Bank will remain closed from June 09, 2010 to June 10, 2010 (both days inclusive) for the purpose of determining the shareholders eligible for the Final Dividend to be declared at the Annual General Meeting. (The Bank's Board has already, in the meeting held on April 24, 2010, recommended a Final Dividend of Rs.4/- (40%) per Equity Share of face value of Rs.10/- each for the year 2009-10). -
24-04-2010 Indian Bank has informed the Exchange that the Board of Directors of the Bank at its meeting held on April 24, 2010 recommended payment of dividend for the year 2009-10 on the Equity and Perpetual Non-Cumulative Preference Share Capital of the Bank as detailed below, subject to declaration of the same by the shareholders of the Bank in the ensuing Annual General Meeting: (1) Final Dividend of Rs.4.00 (40%) per Equity Share of face value of Rs 10/- each. (2) Dividend of Rs.10.00 (10%) per Perpetual Non-Cumulative Preference Share of face value of Rs.100/- each. -
24-04-2010 Indian Bank has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Interest earned of Rs. 784502 lacs for the year ending on 31-MAR-2010 against Rs. 683316 lacs for the year ending on 31-MAR-2009. Interest expended of Rs. 454789 lacs for the year ending on 31-MAR-2010 against Rs. 421604 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 156981 lacs for the year ending on 31-MAR-2010 against Rs. 125515 lacs for the year ending on 31-MAR-2009. -
24-04-2010 Indian Bank has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Interest earned of Rs. 202486.95 lacs for the quarter ending on 31-MAR-2010 against Rs. 185636.6 lacs for the quarter ending on 31-MAR-2009. Interest expended of Rs. 109076.03 lacs for the quarter ending on 31-MAR-2010 against Rs. 118881.45 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 40995.97 lacs for the quarter ending on 31-MAR-2010 against Rs. 39407.38 lacs for the quarter ending on 31-MAR-2009. -
22-02-2010 Indian Bank has informed the Exchange that the Board of Directors of the Bank has, in its meeting held on February 20, 2010, declared an Interim Dividend of Rs.2.50 per Equity Share for the financial year 2009-10. The Board has also fixed March 05, 2010 as the Record Date for the purpose of determining the shareholders eligible to receive the Interim Dividend. The date of payment of dividend will be March 18, 2010. -
25-01-2010 Indian Bank has informed the Exchange that in exercise of the powers conferred by sub-section (2A) of Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act,1970 / 1980 ("the Act") and on the recommendations of Reserve Bank of India, Government of India has, vide Notification dated November 10, 2009, published in the Official Gazette of India on November 21,2009, increased the authorized capital of every corresponding new bank under the Act from Rs.1500 crore to Rs.3000 crore. Accordingly, the Authorized Capital of the Bank stands increased from Rs. 1500 crore to Rs.3000 crore. The Board of Directors of the Bank has, in its meeting held on January 23, 2010, taken on record the increase in the Authorized Capital of the Bank from Rs.1500 crore (Rupees one thousand five hundred crore only) to Rs.3000 crore (Rupees three thousand crore only).
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