OREANDA-NEWS. November 1, 2011. Performance Highlights for the Quarter ended Sep 2011 Profit

• Net Profit of the Bank recorded a YoY growth of 94.12 % to reach Rs.231 crore for the second quarter of 2011-12 aided by 25.83% rise in Total Income and 18.09 % decline in provisioning during the quarter.

Business

In view of the prevailing situation, the Bank has been concentrating on consolidation of business, customer acquisition and CASA growth while shedding bulk deposits. Besides, NPA management/ containment has been one of the top priorities with special focus on recovery of dues. Against this background

-           Total business as at the end of Sep'11 amounted to Rs. 228,590 crore as compared to Rs. 207,178 crore in Sep'10, exhibiting a growth of 10.34 % on Y-o-Y basis

-           Global Deposits of the Bank at Rs. 131,312 crore at the end of Sep'11 grew by 8.52 % (YoY) from Rs. 121,001 crore at the end of Sep'10

-           CASA deposits stood at Rs.32,044 crore as on Sep'11 against Rs.28,803 crore a year ago registering a Y-o-Y growth of 11.25 % aided by 19.16% rise in Current Deposits and 9.49 % rise in Saving Deposits

-           Global Advances of the Bank at Rs. 97,278 crore at the end of Sep'11 grew by 12.88 % (YoY) from Rs. 86,177 crore at the end of Sep'10

- Credit Deposit Ratio improved to 74.08 % as at Sep'11 from 71.22 % in Sep'10.

Income

In a rising interest rate scenario cost of deposits, Net interest income & NIM

were impacted adversely although Bank's YoA improved.

•           Total income during Q2 FY'12 rose by 25.83 % to Rs. 3731 crore due to healthy growth of 28.95 % in Interest Income (YoY).

•           Total expenditure during Q2 FY'12 rose by 33.63 % to Rs. 3020 crore mainly due to 45.13% rise in interest paid on deposits although establishment expenses went down by 12.73%.

Important Ratios

•           EPS (not annualized) stood at 8.34 as at Sep'11 agisnt 6.91 a year ago.

•           ROA rose from 0.36 to 0.60 (QoQ) and from 0.57 to 0.67 (HoH).

•           Yield on Advances stood at 11.43% in Q2 FY'12 against 9.91% in the corresponding period last year registering 15.34 % Y-o-Y growth.

•           CAR of the bank was comfortable at 13.55% under BASEL-II (Tier-I Capital: 8.59%; Tier-II Capital: 4.96%).

Qtr-on-qtr Sequential Performance

•           Total income (Rs.3731 crore) during the current Qtr. rose 1.49% over the previous Jun'11-Qtr. Figure.

•           Net Interest Margin (2.84%) recorded a 15.45% growth over previous qtr. (2.46% ).

•           YOA(11.43%) rose 5.15% on a Qtr-on-Qtr basis

•           Cost to income ratio (41.42%) declined 4.93% on a Qtr-on-Qtr basis.

Delivery Channels

•           Bank's branch network stands at 2231 domestic and 4 overseas branches as on 30.09.11.

•           721 ATMs facilitating around 15.78 lacs ATM/VISA Debit card holders.

•           Bank has launched Interbank Mobile Payment Services (IMPS).

New Initiatives

•           8.67 lac new CASA accounts opened in first 6 months of the FY'12.

•           12 New Retail Loan Hubs added to existing 26 RLH.

•           Bank has renewed MoU with National Small Industries Corpn. for sponsoring loan proposals under MSE sector.

•           Direct Tax payment through ATMs operationalised.