Thursday, August 19, 2010

INDIAN OVERSEAS BANK =FRIST QUARTER = Q1 FY 2011 RESULTS = IMPROVING BUSINESS = NPA PROBLEMS STILL PERSIST


INDIAN OVERSEAS BANK
Q1 FY 2011 RESULTS
ANALYSIS
The performance of IOB has been mixed in the first quarter.
Interest on Advances is Rs.1943.84 cr – up by 4.3% from previous qtr of Q4 FY10 (Rs.1863.58 Cr) – but down by 0.7% from corresponding qtr of Q1 FY10 (Rs.1958.09 Cr)  - and proportionately ( Q1 FY11 x 4 ) up by 1.5% compared to FY 10 (Rs.     7659.48 Cr).
Income on Investments is rs.667.73 Cr – up by 7.1% compared to previous Qtr (Rs.623.34 Cr) – up by 17.6% compared to corresponding qtr (Rs.567.99 Cr) – and proportionately up  by 12.1% from FY 10 (Rs.2381.60Cr).
Total Interest Earned is Rs.2667.52 cr – up by 4.7% from previous qtr (Rs.2547.83 Cr) – up by 3.5% from corresponding qtr (Rs.2577.85 Cr) – and up proportionately by 4.1% from FY2010 (Rs.10245.77 Cr).
Due to  a fall in other income – the Total Income is Rs.2882.38 Cr – up by only 1.9% from previous qtr (Rs.2829.80 Cr) – up by 2.6% from corresponding qtr (Rs.2808.51 Cr) – and proportionately up by 1.2% from FY10 (Rs.11389.03 Cr).
Interest Expended is Rs.1761.26 Cr – up by 2% from previous qtr (Rs.1727.42 Cr) – but down by 2.7% from corresponding qtr (Rs.1809.43 Cr) – and also down proportionately by 0.5% from FY10 (Rs.7077.91 Cr).
Provisions is Rs.76.84 CR – down by 83.3% from previous qtr (Rs.459.82 Cr) – but up from (-)16.74 Cr of the corresponding qtr – and down by 60.8% from FY10 (Rs.783.49 Cr).
Net Profit is Rs.200.44 Cr – up by 57.3% from previous qtr (Rs.127.44 Cr) – but down by 33.6% from corresponding qtr (Rs.301.78 Cr) – and up proportionately by 13.4% from FY10 (Rs.706.96 Cr).
Actually, Net Profit has increased considerably over the last 4 quarters with Q1 FY11 being Rs.200.44 Cr; Q4 FY10 being Rs.127.44 Cr; Q3 FY10 being Rs.101.70 Cr’ Q2 FY10 being Rs.176.04 cr – and only Q1 FY10 being higher at Rs.301.77 cr. The net profit for current qtr is also proportionately higher to FY10 by 13.4% (Rs.7.6.96 cr). So, a clear increasing trend of profits is seen.
Capital Adequacy  Ratio is 13.64 – which is comfortable, though down from previous qtr’s 14.26.
Basic EPS is Rs.3.68 in Q1 FY11 – compared to Rs.2.34 in Q4 FY10; Rs.1.87 in Q3 FY10; Rs.3.23 in Q2 FY10; Rs.5.54 in Q1 FY10  - and Rs.12.98 for the whole of FY2010.
Gross/Net NPA is Rs.1794.41 cr – down by 10.1% from previous qtr(Rs.1994.97 Cr) – but up by 49.3% from corresponding qtr (Rs.1201.76 Cr).
% of Gross/Net NPA is 2.21 – which is down from the previous qtr’s 2.52% -  -but up from corresponding qtr’s 1.59%. In NPA front, the bank still has some difficulties which may last a few quarters.
Return on Assets is 0.58 compared to 0.53 in previous qtr. This also needs to improve a lot.
At the Operating Profit level – the Bank is steadily improving and current qtr’s figures of OPT is Rs.463.90 cr – compared to Rs.455.57 Cr in previous qtr and Rs.428.61 in corresponding qtr.
The results announcement of the Bank talks of  Some NPAs likely to be booked in  September qtr on account of a debt relief scheme to farmers under an RBI circular dated 31.3.2010. Whether this circular is common for all Banks and if so – what would be the effect on Sept qtr results is not clear. But, it seems that the effect is likely to be limited to Sep qtr only. The results also talks of unabsorbed excess liabilities of some Rs.82 crores which IOB can book in accounts before March 2012 – on account of acquiring of a co-op bank. It is not clear when IOB will book this amount in accounts.
So, the results for Q2 FY11 needs watch. If the Bank finishes up all its NPAs and unabsorbed excess liabilities in this qtr, It will then have a clean slate and return to good profitability levels subsequently.

RESULTS IN FIGURES

Jun-10
Mar-10
Dif%1
Jun-09
Dif%2
Dif%3
Interest on Advan.
194384
186358.3
4.3
195809
-0.7
765948.2
1.5
Income on Invest.
66773.4
62334.79
7.1
56799.19
17.6
238160.1
12.1
Income on RBIBalan
5594.9
4881.91
14.6
5177.16
8.1
19260.64
16.2
Others
-
1208.44

-

1208.44
Interest Earned
266751.9
254783.4
4.7
257785.3
3.5
1024577
4.1
Other Income
21486.5
28196.64
-23.8
23066.01
-6.8
114325.4
-24.8
Total Income
288238.4
282980.1
1.9
280851.4
2.6
1138903
1.2
Interest Expended
176126
172742.3
2
180943.2
-2.7
707791
-0.5
Employees Cost
47446.8
43268.07
9.7
40754.82
16.4
173474.9
9.4
Other Optg Expen
18275.4
21411.78
-14.6
16291.4
12.2
73174.79
-0.1
Operating Expens
65722.2
64679.85
1.6
57046.22
15.2
246649.7
6.6
Total Exp.excl.prov
241848.1
237422.2
1.9
237989.4
1.6
954440.6
1.4
Operating Profit
46390.4
45557.9
1.8
42861.93
8.2
184462.1
0.6
Provisions
7683.75
45982.08
-83.3
-1674.29
78349.1
-60.8
Exceptional Items
8217
-

-

8217
300
Profit before tax
30489.6
-424.18
-7288
44536.22
-31.5
97895.96
24.6
Tax Expense
10445.7
-13168.5
14358.7
-27.3
27199.81
53.6
Profit After Tax
20043.94
12744.33
57.3
30177.52
-33.6
70696.15
13.4
Net Profit
20043.94
12744.33
57.3
30177.52
-33.6
70696.15
13.4
Face Value.Rs
10
10
0
10
0
10
Paid-up Equity
54480
54480
0
54480
0
54480
Reserves
-
580417.9

-

580417.9
Dividend (%)
-
35

-


Shares of GOI%
61.23
61.23
0
61.23
0
61.23
Capital Adeq. Ratio
13.64
14.26
-4.3
13.05
4.5
14.26
Basic EPS B EI
3.68
2.34
57.3
5.54
-33.6
12.98
13.4
Diluted EPS B EI
3.68
2.34
57.3
5.54
-33.6
12.98
13.4
Basic EPS A EI
3.68
2.34
57.3
5.54
-33.6
12.98
13.4
Diluted EPS A EI
3.68
2.34
57.3
5.54
-33.6
12.98
13.4
Gross/Net NPA
179441
199497
-10.1
120176
49.3
199497
% of Gross/Net NPA
2.21
2.52
-12.3
1.59
39
2.52
Return on Assets
0.58
0.53
9.4
0.94
-38.3
0.53
Public holding (%)
38.77
38.77
0
38.77
0
38.77

ANNOUNCEMENTS
TO THE EXCHANGE

31-07-2010        Indian Overseas Bank has informed the Exchange regarding the standalone Results for the quarter ended on 30-JUN-2010 as follows: Interest earned of Rs. 266751.92 lacs for the quarter ending on 30-JUN-2010 against Rs. 257785.34 lacs for the quarter ending on 30-JUN-2009. Interest expended of Rs. 176125.91 lacs for the quarter ending on 30-JUN-2010 against Rs. 180943.2 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 20043.95 lacs for the quarter ending on 30-JUN-2010 against Rs. 30177.52 lacs for the quarter ending on 30-JUN-2009.
31-07-2010        Indian Overseas Bank has informed the Exchange regarding a press release dated July 31, 2010, titled "Performance Highlights : 30.06.2010".
30-06-2010        Indian Overseas Bank has informed the Exchange that as per RBI directives, the Board of Directors of the Bank have fixed the Base Rate at 8.25%. The Subject Base Rate is applicable with effect from July 01, 2010.
29-04-2010        Indian Overseas Bank has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Interest earned of Rs. 254783.42 lacs for the quarter ending on 31-MAR-2010 against Rs. 251150.04 lacs for the quarter ending on 31-MAR-2009. Interest expended of Rs. 172742.31 lacs for the quarter ending on 31-MAR-2010 against Rs. 180740.24 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 12744.33 lacs for the quarter ending on 31-MAR-2010 against Rs. 32236.76 lacs for the quarter ending on 31-MAR-2009.         -
29-04-2010        Indian Overseas Bank has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Interest earned of Rs. 1024577.34 lacs for the year ending on 31-MAR-2010 against Rs. 964140.33 lacs for the year ending on 31-MAR-2009. Interest expended of Rs. 707790.95 lacs for the year ending on 31-MAR-2010 against Rs. 677181.34 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 70696.15 lacs for the year ending on 31-MAR-2010 against Rs. 132579.16 lacs for the year ending on 31-MAR-2009.        -
29-04-2010        Indian Overseas Bank has informed the Exchange that at the Board meeting held on April 29, 2010 the Board considered and recommended a Dividend of Rs.3.50 per Equity share of Rs.10/- each (i.e.35%) for the financial year 2009-2010.

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