Indian Overseas Bank - Q4FY12 Result First Cut - Microsec Research

Indian Overseas Bank has announced its Q4FY12 along with Annual FY12 result.

On the quarterly basis, the bank's total income is increased by 12.96% QoQ and 15.28% YoY to INR1844.19 crores. Profit After Tax(PAT) is increased by 388.43% QoQ and 21.76% YoY to INR528.82 crores mainly, because of 41.93% QoQ and 13.10% YoY decline in Provision and Contingencies to INR387.59 crores. For the whole year of FY12, the bank's total income is increased by 23.27% YoY to INR6697.21 crores whereas, Profit After Tax (PAT) is decreased by 2.09% YoY to INR1050.14 crores mainly, because of full year higher provisioning of 88.53% YoY to INR2236.43 crores.

The Bank has reported a growth in advances by 6.17% QoQ and 25.83% YoY to INR140724.44 crores and a growth in deposits by 6.84% QoQ and 22.86% YoY to INR178434.17 crores. On the assets front, the bank's assets quality is still the matter of concern, NNPA and GNPA are increased by 16 and 2bps YoY to 1.35% and 2.74% respectively. Moreover, the bank's Provision Coverage Ratio (PCR) is also not satisfactory, stood at 67.68% below the regulatory requirement of 70%. However, Capital Adequacy Ratio (CAR) stood at 13.32% which is 4.32% above the regulator's stipulated norm.

The Board of Directors have recommended a dividend of 45% i.e. Rs.4.50 per equity share for the financial year 2011-12.

Source : Equity Bulls

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