INDIAN BANK = Q2 FY 2011 (SEPT 2010) RESULTS = VERY GOOD PERFORMANCE = IMPRESSIVE EPS

INDIAN BANK

Q2 FY 2011 RESULTS

Highlights of the performance

for the quarter ended September 2010

Profit

_ Operating Profit for the second quarter of current financial year (Q2 FY11) stood at `738.94 crore as against `553.86 crore in Q2 FY10, recording a y-o-y growth of 33.42%.

o Core operating profit excluding trading profit rose by 51.22 % to ` 680.32 crore

in Q2 FY 11 from ` 449.88 crore in Q2 FY 10.

_ Net Profit of the Bank for the Q2 FY11 amounted to ` 415.77 crore as compared to `371.99 crore in the corresponding quarter, registering a y-o-y growth of 11.77%

Business

_ Total Business of the Bank rose to `1,67,980 crore as compared to ` 1,33,987 crore in September 2009, showing a y-o-y growth of 25.37%.

_ Deposits of the Bank at the end of September 2010 amounted to ` 98,007 crore as

compared to ` 80,068 crore in September 2009, exhibiting a growth of 22.40% on y-o-y basis.

_ CASA improved to ` 31,604 crore in September 2010 from ` 24,790 crore in September 2009 recording a growth of 27.49%.

_ CASA share improved to 32.25% in Q2 of FY 2010-11 from 30.96% a year ago.

_ Advances of the Bank at ` 69,973 crore as on 30.09.2010 grew by 29.77% (y-o-y) as against ` 53,919 crore as on 30.09.2009.

_ Credit Deposit Ratio improved to 71.40% as at September 2010 from 67.34 % in

September 2009.

Income and Expenses

_ Total Income increased by 17.70% to ` 2559 crore, led by y-o-y growth of 20.29% in interest Income.

_ Net Interest Income rose by 37.75% on y-o-y basis to reach `983 crore in Q2 FY11 from ` 714 crore.

_ Core Non Interest Income excluding trading profit witnessed a y-o-y growth of

26.0% to touch ` 225 crore.

_ Total expenses were at `1820 crore at the end of September 2010, as against `1621 crore in September 2009.

Important Ratios

_ Gross NPA to Gross Advances ratio stood at 1.29% as at September 2010 as compared to 1.45 % in Q1 FY 11

_ Net NPA to Net Advances ratio stood at 0.73% as against of 0.76% in Q1 FY 11

_ Provision Coverage Ratio is at 83.27 % compared to RBI’s stipulation of 70%.

_ Net Interest Margin (NIM) has improved to 3.76% for the quarter ended September 2010 from 3.71% in Q1 FY 11.

_ Cost to Income Ratio at 41.67% for the quarter ended September 2010 as against

44.41% last year.

_ Earnings per Share rose to `37.60 (annualized) for the quarter ended 30.09.2010 as against `33.52 in corresponding period last year.

_ Book Value per Share was higher at `172.91 as at September 2010 from `143.89 as on September 2009.

_ As per Basel II the CRAR is 12.96% as at end of September’10 compared to 12.56 % in Q2 FY 10.

·        Global Branch Network crossed 1800 mark and reached 1803 branches.

_ Capital Adequacy Ratio (Basel II) is comfortable at 12.96%

RESULTS IN FIGURES:

INDIAN BANK	30-Sep-10	30-Jun-10	Dif% 1	30-Sep-09	Dif% 2
Interest on Advances	172586.48	158457.84	8.92	141229.22	22.2
Income on Investments	53882.6	52623.34	2.39	50390.08	6.93
Income on Balances With RBI	1093.2	1097.43	-0.39	2097.87	-47.89
Interest Earned	227562.28	212178.61	7.25	193717.17	17.47
Other Income	28366.14	35545.94	-20.2	23720.38	19.59
Total Income	255928.42	247724.55	3.31	217437.55	17.7
Interest Expended	129240.43	119513.79	8.14	117804.86	9.71
Employees Cost	36922.05	32149.02	14.85	31135.52	18.58
Other Operating Expenses	15871.72	12279.73	29.25	13111.51	21.05
Operating Expenses	52793.77	44428.75	18.83	44247.03	19.32
Operating Profit	73894.22	83782.01	-11.8	55385.66	33.42
Provisions	13296.95	34390.32	-61.34	2927.81	354.16
Profit before tax	60597.27	49391.69	22.69	52457.85	15.52
Tax Expense	19019.9	12576.75	51.23	15259.47	24.64
Net Profit After Tax	41577.37	36814.94	12.94	37198.38	11.77
Net Profit	41577.37	36814.94	12.94	37198.38	11.77
Face Value.Rs.	10	10	0	10	0
Paid-up Equity	42977	42977	0	42977	0
Capital Adequacy Ratio	12.2	12.16	0.33	13.2	-7.58
Basic EPS	9.4	8.29	13.39	8.38	12.17
Gross/Net NPA	50566.52	51139.86	-1.12	9746.49	418.82
% of Gross/Net NPA	0.73	0.76	-3.95	0.18	305.56
Return on Assets	1.51	1.42	6.34	1.62	-6.79
Public Shareholding (%)	20	20	0	20	0

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THE SOUTH INDIAN BANK = Q2 FY 2011 (SEPT 2010) RESULTS = VERY GOOD PERFORMANCE = FUTURE QUITE PROMISING

The South Indian Bank Limited

NSE Symbol   SOUTHBANK

The South Indian Bank has produced good numbers for Q2 FY 2011.

Interest on Advances is Rs.455.60 Cr – up by 8.19% from previous Qtr and by a good 24.09% from corresponding Qtr.

Income on Investments        is Rs.116.42 Cr – up by 6.25% from previous Qtr and by 26.34% from corresponding Qtr.

Total Income is Rs.624.38 Cr – up by 7.32% from previous Qtr and by 16.84% from corresponding Qtr.

Interest Expended is Rs.382.21 cr – up by 2.54% from previous Qtr  and by 25.86% from corresponding Qtr.

Provisions   at Rs.6.81 cr is down by 59.22% from previous Qtr and by 58.63% from corresponding Qtr.

Face value of the share has been split up from Rs.10 in previous Qtr to Rs.1 in current Qtr.

Capital Adequacy Ratio continues to be excellent at 14.38 – compared to 14.65 in previous Qtr and 16.26 in corresponding Qtr.

% of Gross/Net NPA is quite Healthy at 0.38 compared to 0.39 in previous Qtr and 0.43 in corresponding Qtr.

Return on Assets is quite healthy at 1.15 against 0.23 in previous Qtr and 0.34 in corresponding Qtr.

Basic EPS in Q2 FY11 is Rs.0.68 on a Face value of Rs.1 against 0.517 in previous Qtr and 0.642 in corresponding Qtr. Thus, the Bank has performed very well on all parameters.

Current MP of the share is around Rs.27.70At an annual EPS level of around 2.7, its PE ratio is around 10. Going forward, the bank has huge potential to improve on its current performance. With its consistent track record and ambitious future, it deserves much better valuations in the market.

Further Details on How the Bank is Faring :

·         TOTAL NUMBER OF BRANCHES : 610 ;   EXT.COUNTERS : 3  ;  ATM : 416;

·         In 2009-10, its total business grew to Rs.38,982 cr from Rs.30,957 Cr , a growth of 29.69% over previous Year. It wants to reach a business of Rs.75000 cr by March 2013 (double the present level) and says it is well on course to reach the same.

·         The growth of advances last year was 33.47% YOY.(at 15970 cr) which the Bank says is double the Industry average during that year.

·         Net profit at 233.76 for 2009-10 has grown by 20.1% YOY. The Bank declared a dividend of 40% last year.

·         Book value at end of year was a healthy Rs.131.39 (Face value of share Rs.10). EPS was 20.58 on Rs.10.

·        The Bank wants to open over 60 branches and 107 ATMs in current year.

The Bank is gradually shedding its one state Bank (Kerala) image by opening number of braches in other states. Its performance in Q2 FY11 is quite good and judging by its Management’s ambition, it could go on growing at much above the Industry average.

RESULTS IN FIGURES :

South Ind Bk	30-Sep-10	30-Jun-10	DEIF% 1	30-Sep-09	Dif% 2
Interest on Advances	45560	42113	8.19	36714	24.09
Income on Investments	11642	10957	6.25	9215	26.34
Income on Balances With RBI	751	942	-20.28	958	-21.61
Interest Earned	57953	54012	7.3	46887	23.6
Other Income	4485	4166	7.66	6551	-31.54
Total Income	62438	58178	7.32	53438	16.84
Interest Expended	38221	37276	2.54	30367	25.86
Employees Cost	7738	6747	14.69	6335	22.15
Other Operating Expenses	3999	3715	7.64	3349	19.41
Operating Expenses	11737	10462	12.19	9684	21.2
Operating Profit	12480	10440	19.54	13387	-6.78
Provisions	681	1670	-59.22	1646	-58.63
Profit before tax	11799	8770	34.54	11741	0.49
Tax Expense	4099	2926	40.09	4484	-8.59
Net Profit After Tax	7700	5844	31.76	7257	6.1
Net Profit	7700	5844	31.76	7257	6.1
Face Value (in Rs.)	1	10	-90	10	-90
Paid-up Equity	11301	11301	0	11301	0
Capital Adequacy Ratio	14.38	14.65	-1.84	16.26	-11.56
Basic EPS	0.68	5.17	-86.85	6.42	-89.41
Diluted EPS	0.67	5.15	-86.99	6.42	-89.56
Gross/Net NPA	6711	6476	3.63	5643	18.93
% of Gross/Net NPA	0.38	0.39	-2.56	0.43	-11.63
Return on Assets	1.15	0.23	400	0.34	238.24
Public Shareholding (%)	100	100		100

ANNOUNCEMENTS

TO THE EXCHANGE

21-10-2010        The South Indian Bank Limited has submitted to the Exchange the Standalone Financial Results for the period ended September 30,2010.

02-09-2010        The South Indian Bank Limited has informed the Exchange that the Board of Directors of the Bank at its Meeting held on August 31, 2010 has decided to fix September 24, 2010 as Record Date for taking the list of shareholders eligible for sub-divided equity shares of face value Re. 1 each.        -

02-09-2010        The South Indian Bank Limited has informed the Exchange that Dr. C.J.Jose, Director has resigned from the office as Director and he ceases to be a member of the Board w.e.f. August 31, 2010. Further the Board of Directors at its meeting held on August 31, 2010 has appointed: 1) Sri Amitabha Guha, 2) Sri K. Thomas Jacob, as additional Directors of the Bank. They will hold office up to the date of the next Annual General Meeting of the Bank.

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