Friday, July 9, 2010

INDUSIND BANK = Q1of FY11 RESULTS = VERY GOOD PROGRESS = FY11 QUITE PROMISING



INDUSIND
BANK
Q1 (FY11) RESULT
COMPARISON
WITH PREVIOUS QUARTERS

IndusInd Bank has performed well in the first quarter of FY11.
The interest on Advances has increased by 8% compared to Q4FY10 and by 23% compared to Q1 of FY10. Investment income has also increased likewise by 5% and 25% respectively compared to Q4FY10 and Q1FY10.
Total interest income has registered an increase of 7% and 23% compared to Q4FY10 and Q1FY10.
Other income, has increased by 22% compared to Q4FY10 but has come down by 7% compared to Q1FY10.
Thus, the growth in total income works out to an increase of  9% and 16% compared to the above quarters. In general, all main heads of Income have been registering sequential increase over each preceding quarters – which shows consistent and robust functioning.
Interest expended has also gone up by 6% and 3% over the above quarters. While this constitutes over 50% of the total expenditure, the other important head is operating expenses, which is around 25% of total expenditure – and this has gone up by 10% and 36% respectively over Q4FY10 & Q1FY10.
Thus, the total expenditure has increased by 8% and 12% respectively over the above Quarters.
Provisions has come down by   8% compared to Q4FY10, but has gone up by 42% compared to Q1FY10. The provision coverage has gone up to 70% as stipulated by RBI - therefore there is no problems in respect of any write offs of NPAs.
Overall, Net profit has increased by a handsome 21% and 37% over the above quarters.
Capital Adequacy Ratio is healthy at 13.71%-though down from 15.33% in Q4FY10.
The quarterly Basic EPS has gone up to Rs.2.89 compared to Rs.2.39 in the previous quarter of Q4FY10  and  Rs.2.44 in Q1FY10.
Even if the remaining 3 Qtrs do not reflect any further improvement, the annual EPS will be a minimum of Rs.11.56 – compared to 9.01 last year. But, if current growth rate in profits and EPS is repeated / improved in remaining Qtrs, the annual EPS could easily be upwards of Rs.16.
The  % of Gross/Net NPA has come down further to 0.38 in Q1FY11 - from 0.5% in Q4FY10 and 1.01% in  Q1FY10. 

Return on Assets in Q1FY11 has further improved to 1.33 from last Quarter’s 1.16.
At Rs.216, the current market price, the PE ratio on the past year’s earnings of 9.01 is 23.97, while on the likely(forward) earnings of FY11 at Rs.16, PE Ratio will be 13.5.
Recently IndusInd Bank has tied up with TATA Motors for its dealer financing.
IndusInd Bank has raised Rs. 420 Crore through Tier- II bond issue in April 2010. ICRA has upgraded the ratings for its tier II bonds issue  on 17.06.2010. Judging by its resolutions, it appears to be contemplating a further QIP issue – presumably to augment its loanable funds.

The Bank must also concentrate on increasing its low cost CASA deposits, which stood at only 23.7% at FY10 end. With further branch expansion planned, this may be taken care of.
Surely, IndusInd Bank is on a good growth Trajectory, has performed well on all parameters and may prove to be even better in coming days.

Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Dif%1
Dif%2
Interest on Advances
60477
55777
53915
52437
49167
8
23
Income on Investments
16445
15715
14429
12617
13154
5
25
Income on Balances With RBI
105
161
314
297
321
-35
-67
Others
127
368
1634
152
241
-65
-47
Interest Earned
77154
72021
70292
65503
62883
7
23
Other Income
16096
13236
11602
13235
17275
22
-7
Total Income
93250
85257
81894
78738
80158
9
16
Interest Expended
47586
44742
46522
44648
46146
6
3
Employees Cost
8904
7793
7299
7885
6079
14
46
Other Operating Expenses
13699
12674
10695
10673
10502
8
30
Operating Expenses
22603
20467
17994
18558
16581
10
36
Total Expdr excl. Prov.
70189
65209
64516
63206
62727
8
12
Operating Profit
23061
20048
17378
15532
17431
15
32
Provisions
4874
5314
4451
3885
3433
-8
42
Exceptional Items
-
-
-
-
-
Profit before tax
18187
14734
12927
11647
13998
23
30
Tax Expense
6332
4938
4123
3865
5348
28
18
Misc Expenditure w/o
-
-
-
-
-
Net Profit After Tax
11855
9796
8804
7782
8650
21
37
Extraordinary Items
-
-
-
-
-
Net Profit
11855
9796
8804
7782
8650
21
37
Face Value(Rs.)
10
10
10
10
10
0
0
Paid-up Equity
41106
41065
41014
41009
35519
0
16
Reserves
-
175495
-
-
-
Dividend (%)
-
18
-
-
-
Shares of GOI(%)
-
-
-
-
-
Capital Adequacy Ratio
13.71
15.33
13.84
13.51
12.14
-11
13
Basic EPS
2.89
2.39
2.15
2.05
2.44
21
18
Diluted EPS
2.81
2.34
2.15
2.05
2.44
20
15
a) Gross/Net NPA
8249
10183
12873
17177
16655
-19
-50
b) % of Gross/Net NPA
0.38
0.5
0.67
0.98
1.01
-24
-62
c) Return on Assets
1.33
1.16
1.08
1.07
1.27
15
5
Public Shareholding (%)
77.85
77.83
77.8
77.8
74.37
0
5

ANNOUNCEMENTS
TO THE
EXCHANGE


09-07-2010        IndusInd Bank Limited has informed the Exchange regarding the standalone Results for the quarter ended on 30-JUN-2010 as follows: Interest earned of Rs. 77154 lacs for the quarter ending on 30-JUN-2010 against Rs. 62883 lacs for the quarter ending on 30-JUN-2009. Interest expended of Rs. 47586 lacs for the quarter ending on 30-JUN-2010 against Rs. 46146 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 11855 lacs for the quarter ending on 30-JUN-2010 against Rs. 8650 lacs for the quarter ending on 30-JUN-2009.    -
30-06-2010        Indusind Bank Limited has informed the Exchange regarding a Press Release dated June 30, 2010 titled "IndusInd Bank ties-up with Tata Motors for dealer financing".        
17-06-2010        Indusind Bank Limited has informed the Exchange regarding a Press Release dated June 17, 2010, titled "ICRA upgrades long term ratings for Tier II Bonds programme of IndusInd Bank".
16-04-2010        Indusind Bank Limited has informed the Exchange that "The amalgamation of IndusInd Limited with De Five (Mauritius) Holdings Limited has been approved by the Reserve Bank of India".         -
16-04-2010        IndusInd Bank Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Interest earned of Rs. 72021 lacs for the quarter ending on 31-MAR-2010 against Rs. 61380 lacs for the quarter ending on 31-MAR-2009. Interest expended of Rs. 44742 lacs for the quarter ending on 31-MAR-2010 against Rs. 46953 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 9796 lacs for the quarter ending on 31-MAR-2010 against Rs. 5052 lacs for the quarter ending on 31-MAR-2009.   -
16-04-2010        IndusInd Bank Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Interest earned of Rs. 270699 lacs for the year ending on 31-MAR-2010 against Rs. 230947 lacs for the year ending on 31-MAR-2009. Interest expended of Rs. 182058 lacs for the year ending on 31-MAR-2010 against Rs. 185044 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 35031 lacs for the year ending on 31-MAR-2010 against Rs. 14834 lacs for the year ending on 31-MAR-2009. -
15-04-2010        IndusInd Bank Limited has informed the Exchange that the two wholly-owned subsidiaries of IndusInd International Holdings Ltd, the promoter of the Bank, are having shareholdings in the Bank as under:- IndusInd Ltd : 1,55,00,000 shares; De Five (Mauritius) Holdings Ltd : 70,00,000 shares. Further, the Bank has informed, the amalgamation of De Five Mauritius Holdings Ltd, with IndusInd Ltd. The Certificate of Amalgamation is issued by the Registrar of Companies, Mauritius. Further, the Bank has also informed that, if the request is approved by Reserve Bank of India, the shareholdings of IndusInd Ltd in the Bank would increase to 2,25,00,000 shares, comprising 5.48% of the Bank's Equity Capital. The details of the same shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
08-04-2010        Indusind Bank Limited has informed the Exchange vide its letter dated April 07, 2010, regarding a press release dated April 06, 2010 titled " IndusInd Bank raises Rs. 420 crore through Tier- II bond issue." A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).

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