OREANDA-NEWS. January 31, 2012. Operating Profit as at December’11 quarter end rose to Rs. 1029.96 crore as against Rs.788.43 crore last year, registering a growth of 30.63% during the period.

Net Profit of the Bank soared to Rs. 560.43 crore for the quarter ended December’11 as against Rs.415.80 crore in the corresponding period last year, recording a growth of 34.78%.

Net Interest Income during Q-3-FY2011-12 surged to Rs.1380.50 crore as against Rs.1051.63 crore last year showing a YoY growth of 31.27%.

Non-Interest Income during the third quarter of 2011-12 was Rs.348.41crore as against Rs.257.64 crore previous year registering a YoY growth of 35.23%.

Gross NPA to Gross Advances capped at 1.86 % as at the December-end, 2011.

Net NPA to Net Advances Ratio stood at 0.79 % as at the quarter ended December, 2011.

Net Interest Margin (NIM) increased to 3.73 % at the end of the December, 2011 quarter as against 3.44% last year.

Highlights of the performance for the Nine Months ended December, 2011

Operating Profit surged to Rs. 2868.87crore as at December,2011 as against Rs. 2274.54 crore last year showing a YOY growth of  26.13 %.

 Net Profit rose to Rs. 1466.57 crore during the Nine Months period ending 31.12.2011 as against Rs.1165.51 crore last year showing a YOY Growth of 25.83 %.

Net Interest Margin (NIM) increased to 3.60% during the Nine Months ending December,11 as against 3.34% last year.

Net Interest Income during the Nine Months since April, 2011 stood at Rs. 3874.28 crore as against Rs. 2871.17 crore last year recording a YOY Growth of 34.94 %.

Non-Interest Income during the Nine Months ending December, 11 rose to Rs. 943.54 crore as against Rs. 900.94 crore previous year.

Total Business of the Bank increased at Rs. 2,46,939  crore as on 31.12.2011 as against Rs.2,07,785 crore in previous year showing a YOY growth of   18.84%.

Deposits of the Bank went up to Rs. 1,45,300  crore as on 31.12.2011 from Rs. 1,20,948  crore as on 31.12.2010. Year-on-Year basis, Total Deposits grew by 20.13% (Rs. 1,31,887 crore as on 31.3.2011).

Gross Credit surged to Rs. 1,01,640 crore as on 31.12.2011 as against Rs.86,837 crore as on 31.12.2010. Year-on-Year basis, Gross Credit increased by 17.05% (Rs. 94,571 cr. as on 31.3.2011).

Credit Deposit Ratio stood at 70.23 % as at December, 2011 end.

Gross NPA to Gross Advances capped at 1.86% as at December-end 2011.

Net NPA to Net Advances Ratio stood at 0.79% as at December, 2011 (0.79 % as at March 2011).

Provision Coverage Ratio stood at 78.03 %.

Capital Adequacy Ratio registered at 12.75 % as on 31.12.2011.

Shareholders' Value:

Return on Assets as at the end of Nine Months in December, 11 rose to 1.26 % as against 1.24% last year.

Earnings per Share surged to Rs.30.80 during the Nine Months ended December,11 from Rs.26.09 corresponding last year.

Book Value per Share increased to Rs. 210.12 during the Nine Months ended Dec, 2011 from Rs. 177.16 as on 31.12.2010.

New Initiatives:

As many as   62 Branches have been opened during the Nine months ending Dec, 2011 of which 22 are Rural, 27 are Semi-Urban, 6 are Urban and   7 are Metropolitan Branches taking the Total number to 2477 of which 36  Branches have been opened during the Quarter ending Dec, 2011.

Bank has launched new Home Loan Product “All Bank Aashiana”, having several attractive features viz. low interest rate, less margin.

As a mark of respect towards Senior Citizens, Bank has enhanced the ceiling of Pensioners’ Personal Loan from Rs. 75,000/- to Rs.2.00 lac with no margin, no processing fees & reduced interest rate. 

Bank has imparted training to 2384 Personnel (Officers 1479, Award Staff- 905) during the quarter through Bank’s own Internal Training Establishments.

Bank has inducted 111 Officers and 726 Clerical Cadre Employees in the system during the quarter ending Dec, 2011 and further intake of about 1600 Probationary Officers and 225 Specialist Officers in lateral line in various specialized fields is in the pipeline in view of the changing need of human capital and for strengthening the existing manpower with the infusion of new blood in the system.

Bank has introduced digital processing of loan proposals of KCC through introduction of comprehensive product Akshay Krishi–Kisan Credit Card Scheme so as to make it simple, easy and fast for speedy disposal by the field functionaries.

Retail Credit:

Total Disbursement under Retail Credit of the Bank up to Dec,2011 surged to Rs.2964 crore as against Rs.2594 crore during the corresponding period last year registering a growth of 14.27%.

Total Outstanding under Retail Credit as on 31.12.2011 stood at Rs. 14379 crore as against  Rs. 11913 crore as on 31.12. 2010, constituting 14.12% of Gross Credit of the Bank.

Bank has extended Festival Bonanza discount on Select Retail Loan Schemes up to 31.12.2011, under which Rebate up to 1.50 % in Interest Rate and 50 % in applicable Processing Charges have been allowed. Loans amounting to Rs.676.89 crore have been disbursed up to 31.12.2011 with Festival Bonanza Discount.

Bank has entered into a Tie-Up arrangement with M/S Tata Motors Ltd for financing their vehicles for personal use under Bank’s Car Loan Scheme for employees.

Total disbursement under Housing Loan during the 9 months ending December, 2011 surged to Rs.536.84 crore as against Rs.460.21 crore last year registering a YoY growth of 16.65%.

Total Outstanding under ALLBANK COMMERCIAL VEHICLE FINANCE as on 31.12.2011 surged to Rs.544.41 crore as against Rs. 217.15 crore as on 31.12.2010 (YoY Growth 151%).

Total Outstanding in Auto Loan (Car + Mobike) increased to Rs. 674.65 crore as on 31.12.2011 as against Rs. 564.33 crore last year (YoY Growth 19.55%).

The disbursement under Gold Loan Scheme increased to Rs.49.11 crore in the current financial year against Rs. 6.09 crore in the corresponding period last year, registering a growth of 706.35%.

Social Banking

Priority Sector Credit grew to Rs. 31258 crore as on 31.12.2011 from Rs. 27455 crore, as on 31.12.2010 registering an absolute YoY rise of Rs.3803 crore and YOY growth of 13.85%.    

Agriculture Credit outstanding increased to Rs. 13402 crore as on 31.12.2011 from Rs.12172 crore as on 30.12.2010 registering an absolute YoY growth of Rs. 1230 crore.

Bank’s Credit to Micro & Small Enterprises (MSE) grew to Rs.13545 crore as on 31.12.2011 from Rs. 9974 crore last year registering an absolute YoY rise of Rs. 3571crore (Growth 35.81%).

Bank has covered 2341 villages under Financial Inclusion Plan by December, 2011 by way of opening of Branches in 12 villages, 22 villages through Mobile Branch, 3 villages are covered through satellite branch and 2304 villages by Business Correspondent (BC) Models.

Bank, as a Registrar of UIDAI, has completed 258359 number of enrolments up to December, 2011.

Technology:

Bank’s 24 million plus Customers can now avail Banking facilities through any of Bank’s 2477 Branches nation-wide.

Bank has issued more than 11.90 lac   ATM-cum- Debit Cards to its Customers.

Cheque Truncation System (CTS) implemented at Chennai on 21.10.2011.

As a part of green initiative, High Definition Video conferencing system is being implemented at 59 identified locations across the country in order to have a seamless communication for review of performance of branches.

Risk Management:

Basel-II norms have been implemented by the Bank as per the RBI directives and the Bank has adopted the undernoted Risk Management approaches :-

Standardised Approach                                       ----- For Credit Risk

Standardised Approach (Duration Based)      ---- For Market Risk

Basic Indicator Approach                                   ---- For Operational Risk

Bank has appointed a Consultant for implementation of Integrated Risk Management Solution to migrate to advanced approaches under Basel-II. Towards observance of Market Discipline, Bank is publishing all the required disclosures in the Annual Report as well as on its Website.

Future Plans

Bank has planned to achieve Rs.2, 80,000 crore in Total Business within 31st March, 2012.

Bank has envisaged to cross Rs. 4.00 lac crore in Total Business, to increase the number of Branches to 3000 and to open 2000 ATMs within next 3 year horizon.

Out of total 18167 villages allotted to the Bank, Financial Inclusion Plan will be implemented covering 2618 villages with population above 2000 within 31.03.2012 through Business Correspondents and 200 Biometric Rural ATMs and 15549 villages with population of less than 2000 will be covered within 31.03.2014.

108 numbers of Authorizations for opening New Branches are in hand.

Out of 21 Rural Self Employment Training Institutes (RSETIs) planned to be opened by the Bank, 17 such Institutes have already been made operational. 

Bank has plans to open more  Branches Overseas including one at Dhaka(Bangladesh) and Kowloon (Hong Kong) besides upgrading its Representative Office at Shenzhen, China into a full-fledged Branch, for which ground work is in progress.