Indian Bank - Q3FY13 Result First-Cut
Rajesh Desai
Dear Sir/Madam,
Indian Bank Ltd has announced its Q3FY13 result.
The bank’s total income decreased by 6.74% QoQ and 4.66% YoY to INR1383.67 crores. It is mainly, due to declined growth in its Net Interest Income (NII) and Other Income. Whereas, Profit After Tax (PAT) decreased by 33.44% QoQ and 37.14% YoY to INR330.61 crores. During the quarter, bank has increased its Provisions by 103.61%% QoQ and 74.34% YoY to INR411.64 crores, which has affected its bottom line.
Despite challenging environment, Bank's loans book and total deposits expanded by 13.56% and 13.54% YoY to INR99983 and INR135077 crores respectively. On the margin front, Net Interest Margin (NIM) improved by 4bps QoQ to 3.16%. Moreover, bank has maintained its low cost deposits portfolio (CASA) on QoQ basis to 30%. Moreover, the bank is well capitalized to support its growth trajectory. Capital Adequacy Ratio (CAR) improved by 9bps QoQ and 123bps YoY to 13.07%, which is 4.07% higher than the regulator’s stipulated norm. On the asset quality front, GNPA and NNPA increased by 112 and 84bps QoQ and 183 and 137bps YoY to 3.18% and 2.17% respectively.
Among the PSU peer banks, Indian Bank has better fundamentals and strong Return Ratios. The bank’s thoughtful business strategy differs it from its peers. We believe, asset quality, the only concern for the bank may improve going forward. We recommend a Buy on the stock with a target price of INR245 with an investment horizon of 12 month.
|
Indian Bank Ltd Quarterly-[INR-Crores] |
|
| |||
DESCRIPTION |
Q3'13 |
Q2'13 |
Q3'12 |
QoQ% |
YoY% |
Interest Earned |
3546.46 |
3410.38 |
3224.00 |
3.99 |
10.00 |
|
Interest Expended |
2403.02 |
2290.08 |
2053.98 |
4.93 |
16.99 |
|
NII |
1143.44 |
1120.30 |
1170.02 |
2.07 |
-2.27 |
|
Other Income |
240.23 |
363.37 |
281.24 |
-33.89 |
-14.58 |
|
Total Income |
1383.67 |
1483.67 |
1451.26 |
-6.74 |
-4.66 |
|
Operating Expenses |
635.54 |
576.41 |
539.71 |
10.26 |
17.76 |
|
Operating Profit before Prov.& Cont. |
748.13 |
907.26 |
911.55 |
-17.54 |
-17.93 |
|
Provisions and Contingencies |
411.64 |
202.17 |
236.12 |
103.61 |
74.34 |
|
Profit Before Tax & Exceptional Item |
336.49 |
705.09 |
675.43 |
-52.28 |
-50.18 |
|
Exceptional Item |
- |
-1.16 |
-52.33 |
- |
- |
|
Tax |
5.88 |
209.56 |
201.83 |
-97.19 |
-97.09 |
|
Profit After Tax |
330.61 |
496.69 |
525.93 |
-33.44 |
-37.14 |
|
Adj Calculated EPS |
7.42 |
11.29 |
11.97 |
-34.28 |
-38.01 |
|
Advances |
99983.00 |
95000.12 |
88044.00 |
5.25 |
13.56 |
|
Deposits |
135077.00 |
131180.00 |
118970.00 |
2.97 |
13.54 |
|
|
Q3'13 |
Q2'13 |
Q3'12 |
QoQ (bps) |
YoY(bps) |
Capital Adequacy Ratio Basel II |
13.07% |
12.98% |
11.84% |
9 |
123 |
|
% of Net NPAs |
2.17% |
1.33% |
0.80% |
84 |
137 |
|
% of Gross NPAs |
3.18% |
2.06% |
1.35% |
112 |
183 |
|
CASA% |
30.00% |
30.00% |
31.30% |
0 |
-130 |
|
NIM % |
3.16% |
3.12% |
3.58% |
4 |
-42 |
|
Provisions Coverage% |
61.23% |
70.97% |
76.50% |
-974 |
-1527 |
|
C/D ratio |
74.02% |
72.42% |
74.01% |
160 |
1 |
|
C/I Ratio |
45.93% |
38.85% |
37.19% |
708 |
874 |
|
OI/TI |
54.07% |
61.15% |
62.81% |
-708 |
-874 |
Regards,
Team Microsec Research
Microsec Capital Limited
Tel: 91 33 30512100
Fax: 91 33 30512020
--
CA. Rajesh Desai