AUDITED FINANCIAL RESULTS For the year ended 31 st March 2007.
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AUDITED FINANCIAL RESULTS For the year ended 31 st March 2007
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Transcript of AUDITED FINANCIAL RESULTS For the year ended 31 st March 2007.
AUDITED FINANCIAL RESULTSFor the year ended 31st March 2007
HIGHLIGHTS
EPS Rs.7.03 ps
BVPS Rs. 46.85ps
LoansRs. 18683
DepositsRs. 27690
ATMs269
CRAR11.52%
Net ProfitRs. 201.56
1135 Branches
FY 06-07
Amount in Rs.Crore
FINANCIALS[Amount in Rs. Crore]
2005-06
2006-07
Growth [%]
05-06[Q4]
06-07[Q4]
Growth [%]
Total Income 2199.17 2510.04 13.11 579.88 684.24 18.00
Total Expenses 1598.80 1874.67 17.25 409.62 499.97 22.06
Operating Profit [excl. profit on sale of Investment]
475.04 595.92 20.39 127.06 144.02 13.35
Operating Profit [excl. profit on sale of investments/ fixed assets]
418.72 595.92 42.32 70.74 144.02 103.59
Operating Profit [incl. profit on sale of Investment/ fixed assets]
600.37 635.37 5.83 170.26 184.27 8.23
Provisions & Contingencies 548.87 402.35 [-ve] 35.82 148.75 315.27
Profit before Tax 51.50 233.02 352.47 134.44 35.52
Provision for Tax [21.49] † 31.46 3.97 †[8.28]
Net Profit 72.99 201.56 176.15 130.47 43.80† After reversal of provision of earlier years of Rs. 54.54 crore [Rs.35.19 crore)† Operating profit is after regrouping (deducting) of amortizing of premium paid on investments – Rs.30.72 crore [19.96 crore]
PROFIT & LOSS[Amount in Rs. Crore] 2005-06 2006-07
Growth [%]
05-06[Q4]
06-07[Q4]
Growth [%]
TOTAL INCOME 2199.17 2510.04 13.11 579.88
684.24 18.00
Interest Income 1760.13 2118.52 20.36 429.60
584.49 36.05
- Advances 984.85 1391.80 41.32 263.91
396.73 50.33
- Investment 714.09 665.09 [6.86] 163.36
170.50 4.37
- Others 61.19 61.63 0.72 2.33 17.26 640.78
Non Interest Income 439.03 391.52 [10.82] 150.28
99.75 [33.62]
- Profit on sale of securities
125.33 39.45 [68.52] 11.89 3.23 [72.83]
- Profit on sale of fixed assets
56.32 0.00 56.32 0.00
- Others 237.43 352.07 48.28 82.07 96.52 17.61
PROFIT & LOSS[Amount in Rs. Crore]
2005-06
2006-07
Growth [%]
Mar ’06[Q4]
Mar ’07[Q4]
Variation
[%]
TOTAL EXPENSES 1598.80 1874.67
17.25 409.62 499.97 22.06
Interest Expenses 1037.45 1263.16
21.76 269.18 351.57 30.61
- Deposits 973.37 1189.67
22.22 251.19 328.73 30.87
- Others 64.08 73.49 14.68 17.99 22.84 26.96
Operating Expenses 561.34 611.51 8.94 140.44 148.40 5.67
- Staff related 354.25 384.08 8.42 85.68 86.12 0.51
- Others 207.09 227.43 9.82 54.76 69.79 27.45
NET INTEREST INCOME
722.68 855.36 18.36 160.42 232.91 45.19
OPERATING PROFIT 620.32 635.37 2.43 170.26 184.26 8.22
Provisions & Contingencies
570.62 402.35 [29.49] 35.82 148.75 315.27
Provision for Taxes [23.29] †31.46 3.97 †[8.28]
NET PROFIT 72.99 201.56 176.15 130.47 43.80
† After reversal of provision of earlier years of Rs. 54.54 crore [Rs.35.19 crore]
NON INTEREST INCOME[Amount in Crore]
2005-06
2006-07
Variation [%]
Mar ’06[Q4]
Mar ’07[Q4]
Variation [%]
Profit on sale of Investment
125.33
39.45 [68.52] 11.89 3.23 [72.83]
Profit on sale of fixed assets
56.32 0.00 56.32 0.00
Commission Income 87.44 125.20 43.18 25.04 31.16 24.44
Exchange earned on Forex 25.26 30.76 21.77 8.30 11.76 41.69
Process Fee 22.59 28.37 25.59 7.54 10.08 33.69
Other Income 34.69 37.44 7.93 13.25 15.13 14.19
Recovery in w/off Investment
29.98 5.42 [81.92] 1.65 0.00
Recovery in w/off Accounts 77.38 155.60 101.09 31.30 37.02 18.27
Profit/Loss on Revaluation of Inv.
[19.96]
[30.72] 53.91 [5.01] [8.63]
Total 439.03
391.52 [10.82] 150.28 99.75 [33.62]
BREAK UP OF NON INTEREST INCOME[Amount in Rs. Crore] 2005-06 2006-07
Mar ’06[Q4]
Mar ’07[Q4]
Commission
Banking – DD/LC/BG etc. 70.66 105.20 18.61 24.92
Third part products – Ins/MF/Franking
4.82 5.52 1.71 1.69
Govt. Business 4.79 6.00 2.82 2.35
SDV locker rent 7.17 8.48 1.90 2.20
Total commission income 87.44 125.20 25.04 31.16
Exchange 25.26 30.76 8.30 11.76
Process fee 22.59 28.37 7.54 10.08
† includes Rs.16.90 crore on account of change in Accounting Policy
BREAK UP OF NON INTEREST INCOME .. contd
[Amount in Rs. Crore] 2005-06 2006-
07Mar ’06
[Q4]Mar ’07
[Q4]
Other income
Profit from sale of investments 125.33 39.45 11.89 3.23
Profit from revaluation of investments †
[19.96] [30.72] [5.01] [8.63]
Dividend income 1.60 2.12 0.21 0.15
Profit from sale of fixed assets 56.32 0.06 56.35 0.06
Incidental changes 7.70 10.58 2.60 4.09
Supervision charges 4.42 5.42 1.65 1.98
Others 20.97 23.74 10.40 8.85
Total other income 196.38 50.65 78.09 9.73
Recovery in written off advances 77.38 155.60 31.30 37.02
Recovery in written off investments 29.98 0.95 0.01 0.00
Total non interest income 439.03 391.53 150.28 99.75† Regrouping done from provision to Non Interest income
PROVISIONS & CONTINGENCIES[Amount in Rs. Crore] 2005-06
2006-07
Variation [%]
Mar ’06[Q4]
Mar ’07[Q4]
Variation
[%]
Non Performing Loans
236.92 287.89 21.51 [3.16] 112.13
Frauds & Other Assets
[0.25] [0.86] 244.00 0.82 [0.34]
Investments 270.69 83.02 [69.33] 42.33 23.32 81.52
Fringe Benefit Tax 1.80 1.39 [22.78]
Income Tax incl. DTA [23.26] †30.07 4.00 †[8.28]
Prov for Standard Assets
42.92 32.86 [23.44] [4.71] 13.18
Country Risk 0.00 0.20 0.50 0.24 108.33
Contingent Liabilities [1.45] [0.76] [47.59] 0.00 0.20
TOTAL 527.38 433.81 [20.74] 39.78 140.47 253.11
† After reversal of provision of earlier years of Rs. 54.54 crore [Rs.35.19 crore]
RESOURCES
[Amount in Rs. Crore] 2004-05 2005-062006-
07Growth
[%]
Current 2123.61 2380.573281.2
637.84
Savings 6660.06 7930.639043.5
914.03
Term12112.8
813311.8
615365.
0615.42
Total20896.5
523623.0
627689.
9117.22
Share of Demand Deposits (CASA)
42.03 43.65 44.51
Borrowings 334.98 0.99 450.94
DEPOSITS
20897
2362327690
0
5000
10000
15000
20000
25000
30000
March '05 March '06 March '07
Deposits
66607931 9044
0
2000
4000
6000
8000
10000
March '05 March '06 March '07
Savings
2075
2327 3214
0
1000
2000
3000
4000
March '05 March '06 March '07
CurrentAmount in Rs.Crore
DEPLOYMENT[Amount in Rs. Crore] 2004-05 2005-06 2006-07 Growth [%]
Gross Advances 11865 14748 18683 26.68
Priority Sector 4755 6074 7629 25.60
- Agriculture 1749 2363 3345 41.56
- SSI 1257 1321 1554 17.64
- Others PS 1749 2389 2730 14.27
PS Advances to Net Bank Credit [%]
42.46 42.20 42.03
Retail Credit 1477 2249 3423 52.20
SME 1761 2388 3158 32.24
CD Ratio [%] 59.04 62.43 67.47
Investment 9697 8571 9235 7.75
INVESTMENT PORTFOLIO[Amount in Rs. Crore] 31.03.06
31.03.2007
HTM 5935 7457
AFS 2562 1775
HFT 74 3
Total 8571 9235
Modified duration – AFS + HFT 3.95 2.47
ASSET QUALITY[Amount in Rs. Crore] 2005-06
2006-07
Variation [%]
2005-06Q4
2006-07Q4
Variation [%]
Gross Non Performing Assets
Opening Balance 1147.54 949.401007.7
9857.8
3
Less:
-Cash Recovery & credit operations
227.07 247.29 8.90 74.40 91.70 38.60
-Upgradations 31.41 76.61 143.90 12.61 56.04 597.88
-Write-off 273.63 414.78 51.58 53.11177.4
327.47
Total Reductions 532.11 738.68 38.82 140.12325.1
752.39
Add:
Slippage & Debit Operations
333.97 533.76 59.82 81.73211.8
266.84
Closing Balance 949.40 744.48 [21.58] 949.40744.4
8[21.58]
ASSET QUALITY
11865
14748
18683
9.67%
6.44%
3.98%
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
March '05 March '06 March '07
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Gross Advances Gross NPA
1130914231
18303
5.23%
1.99%
3.04%
0
5000
10000
15000
20000
March '05 March '06 March '07
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Net Advances NNPAAmount in Rs.Crore
ASSET QUALITY[Amount in Rs. Crore] 2005-06 2006-07
2005-06Q4
2006-07Q4
NPA Provision
Opening Balance 536.17 499.46 555.73 437.86
- Additions 236.92 287.89 [3.16] 112.13
- Reductions 273.62 414.78 53.11 177.42
Closing Balance 499.46 372.58 499.46 372.58
Gross NPA to Gross Advances [%]
6.44 3.98 6.44 3.98
Net NPA to Net Advances [%]
3.04 1.99 3.04 1.99
Provision Cover [%] 52.61 50.05 52.61 50.05
CAPITAL ADEQUACY[Amount in Rs. Crore] 2004-05 2005-06 2006-07
Eligible Tier I Capital 727.11 848.23 1086.81
Eligible Tier II Capital 578.67 662.97 979.37
Eligible Total Capital 1305.78 1511.20 2066.18
Total Risk Weighted Assets 10967.20 14225.29 17941.01
Core CRAR 6.63 5.96 6.06
CRAR on Tier II Capital 5.28 4.66 5.46
CRAR 11.91 10.62 11.52
Networth 727.11 848.23 1086.81
COST / YIELD FACTORS [%]4.85
4.58
4.89
4.4
4.6
4.8
5
Mar '05 Mar '06 Mar '07
Cost of Deposits
8.197.8
8.66
7
7.5
8
8.5
9
Mar '05 Mar '06 Mar '07
Yield on Advances
9.46 9.17
7.74
0
5
10
Mar '05 Mar '06 Mar '07
Yield on Investment [incl POSOI]
8.27
7.82
7.39
6.5
7
7.5
8
8.5
Mar '05 Mar '06 Mar '07
Yield on Investment [excl. POSOI]
FINANCIAL RATIOS2005-
062006-
07
Mar ’06 [Q4]
Mar ’07[Q4]
Cost of Funds [%] 4.66 5.19 4.66 5.45
Yield on Funds [%] 7.46 7.84 6.98 8.08
Interest Income as percentage to AW funds 7.03 7.47 6.62 7.72
Non Interest Income as percentage to AW Funds
1.89 1.38 2.39 1.32
Interest spread to working funds 2.88 3.02 2.47 3.07
Dividend [%] 0.00 8.00 0.00 0.00
FINANCIAL RATIOS2005-
062006-
07
Mar ’06 [Q4]
Mar ’07[Q4]
Operating Profit as percentage to working funds 2.48 2.24 2.70 2.43
Operating Profit (Excl. profit on sale of fixed assets) as percentage to working funds
2.17 2.24 1.75 2.43
Net Interest Margin [NIM] % 2.95 3.00 2.62 3.27
Earning Per Share Rs. 2.54 7.03 4.55 1.53
Book Value (excluding revaluation reserve) Rs. 29.57 37.89 29.57 37.89
Cost / Income Ratio [%] 47.50 49.04 44.48 44.61
Coverage Ratio [%] – [Networth-NNPA] / Total Assets]
1.56 2.26 1.53 2.26
PRODUCTIVITY RATIOS2005-06 2006-07
Mar ’06[Q4]
Mar ’07[Q4]
Business Mix [Rs. in Crore] 38370.85
46372.98
38370.85
46372.98
Business Mix Per Employee [Rs. in Crore]
3.64 4.47 3.78 4.58
Profit Per Employee [Rs.in Lakhs]
0.72 1.99 1.28 0.43
Business Per Branch [Rs. in Crore]
36.11 43.62 37.51 44.76
Profit Per Branch [Rs. in Lakhs] 7.13 19.46 12.75 4.23
NEW INITIATIVES AND THRUSTEXPANDING OUTREACH :
• 13 New Branches were opened during the year - 1st foot print established at Pondicherry (U.T.);
• Total Branches increased from 1122 to 1135;
• Industrial Finance Branch (IFB) established at Ahmedabad – addition to the existing One IFB & One CBB at Mumbai;
• 50 more branches awarded ISO Certification during the year - total tally : 225.
NEW INITIATIVES AND THRUSTTECHNOLOGY:
• Landmark year for the Bank towards its Technology based initiatives;
• Ushered into CORE BANKING, having awarded a Total Outsourcing contract to
M/s Wipro to cover 850 Branches under the solution - Software Support
from Infosys - Finacle;
• 12 branches opened during the year were taken under Core Banking ab-initio;
• 29 New ATMs installed during the year - Total tally of 269 ATMs (including 49 off-site locations);
• 2 Bio-metrics ATMs installed at Rural Centres in Gujarat - introducing a feel & ease of Technology to the Rural / less-literate folk;
NEW INITIATIVES AND THRUSTTECHNOLOGY:
• Transformation through Technology : Bank has set up its own network “DENANET” using 521 leased lines, 226 ISDN lines, 121 V-SATs and 615 Dial up lines connecting 1006 branches and 34 administrative offices;
• ‘DENANET” is continuously being monitored on 24x7 basis ensuring more than 99 % uptime.
• MoU signed with Indian Railways for installation of 117 ATMs & 78 Kiosks at Railway Stations for dispensation of Railway tickets, e-tickets, monthly / quarterly tickets, PRS / UTS tickets, besides offering other normal services.
NEW INITIATIVES AND THRUSTAUGMENTING RESOURCES:
• Garnering Retail Deposits : Bank had launched three new deposit schemes viz. ‘Dena Maha Tax Bachat Yojana’, ‘Dena Double Deposit Scheme’ and ‘Denalaxmi Gold Deposit Scheme’ during the year;
• Also introduced ‘Dena Super Premium Current Account’, a scheme bundled with freebies to cater to the premium segment and to augment precious low cost deposits;
• Specialised services to NRIs: 4 new NRI cells set up during the year - total tally of 16;
NEW INITIATIVES AND THRUSTGARNERING FEE BASED INCOME:
• Bank entered into tie up arrangement with 4 more Mutual funds during the year in addition to existing 4, thus providing a bountiful basket of varied products from the leading mutual funds viz. UTI, ICICI Pru, LIC, Franklin Templeton, HDFC, Reliance, ING & Kotak Mutual, for selling their products;
• Already tied up with LIC for selling Life Insurance Products and entered into a referral arrangement with Oriental Insurance for Non-life products;
• Innovative ‘Dena Grah Swami Suraksha Yojna’ introduced, in association with LIC to provide Loan linked Life Insurance Cover to
a Housing Loan Borrower during the currency of a the Loan;
NEW INITIATIVES AND THRUSTGARNERING FEE BASED INCOME:
• Rupee Drawing Arrangement made with UAE Exchange for inward remittances of NRI funds during the year, with a view to enable new client acquisition and help garner NRI / Resident deposits;
• Adds to the bank’s existing similar arrangements with Western Union Money & Times of Money for foreign inward remittances.
NEW INITIATIVES AND THRUSTPRIORITY LENDING:
• Collaborated with Gujarat Green Revolution Co Ltd for promoting lending under Micro Irrigation Scheme – Drip & Sprinkler Irrigation;
• ‘Dena Swachha Gram Yojna’, a scheme to provide collateral free finance for construction of Toilets / Bathrooms in rural areas launched, with a view to provide clean and hygienic living conditions to the rural folk;
• ‘Dena Paryavaran Suraksha Yojna’, a scheme to finance autorickshaw owners for acquiring / fitting CNG / LPG gas kit in old auto rickshaws launched as a measure to curb environmental air pollution; 900 such auto rickshaw owners financed so far; contributing to a safer environment, in a subtle way;
NEW INITIATIVES AND THRUSTHUMAN RESOURCES DEVELOPMENT:
• Undertaken major initiative on building Leadership Skills across cadres;
• Bank has engaged the services of a consultant of repute to advise on the strategies for repositioning of the Bank;
• 371 new officers recruited during the year, to infuse young and specialised talent in different specialised areas viz. Credit, IT, Marketing, Agriculture and Treasury etc.;
• Bank continues the process of customer-centric grooming of its frontline staff at the branches.
ROAD MAP AHEAD:ROAD MAP AHEAD:
• Plans to open at least 50 new branches during the current year;
• Another Industrial Finance Branch slated to be opened at New Delhi;
• 130 more Branches planned to be rolled out under CBS during FY 2007-08;
• Bank intends to make the Call Centre operationalised by the end of the year, to facilitate the bank’s customers;
• To expand outreach and facilitate rural centres with a greater number of bio-metric ATMs;
ROAD MAP AHEAD:ROAD MAP AHEAD:
• Bank proposes to enter into a tie-up arrangement with Postal department for engaging their services as Business facilitators for processing and recovery of loans;
• To continue to offer innovative deposit schemes to augment low cost / retail deposits;
• The Bank continues to lay focus on credit to productive sectors of the economy viz. SME, Manufacturing and Agriculture etc.;
• To shore up new avenues of fee based income viz. Selling of Gold, tie ups with more mutual funds / exchange houses etc.;
• Committed to reposition itself as a robust medium sized Bank with strong fundamentals.
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