FINANCIALS [Amount in Rs. Crore]2005-062006-07 Growth [%] 05-06 [Q4] 06-07 [Q4] Growth [%] Total Income2199.172510.0413.11579.88684.2418.00 Total Expenses1598.801874.6717.25409.62499.9722.06 Operating Profit [excl. profit on sale of Investment] 475.04595.9220.39127.06144.0213.35 Operating Profit [excl. profit on sale of investments/ fixed assets] 418.72595.9242.3270.74144.02103.59 Operating Profit [incl. profit on sale of Investment/ fixed assets] 600.37635.375.83170.26184.278.23 Provisions & Contingencies548.87402.35[-ve]35.82148.75315.27 Profit before Tax51.50233.02352.47134.4435.52 Provision for Tax[21.49]† 31.463.97†[8.28] Net Profit72.99201.56176.15130.4743.80 † 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]2005-062006-07 Growth [%] 05-06 [Q4] 06-07 [Q4] Growth [%] TOTAL INCOME2199.172510.0413.11579.88684.2418.00 Interest Income 1760.132118.5220.36429.60584.4936.05 - Advances984.851391.8041.32263.91396.7350.33 - Investment714.09665.09[6.86]163.36170.504.37 - Others61.1961.630.722.3317.26640.78 Non Interest Income 439.03391.52[10.82]150.2899.75[33.62] - Profit on sale of securities125.3339.45[68.52]11.893.23[72.83] - Profit on sale of fixed assets 56.320.0056.320.00 - Others237.43352.0748.2882.0796.5217.61
PROFIT & LOSS [Amount in Rs. Crore]2005-062006-07 Growth [%] Mar ’06 [Q4] Mar ’07 [Q4] Variation [%] TOTAL EXPENSES1598.801874.6717.25409.62499.9722.06 Interest Expenses1037.451263.1621.76269.18351.5730.61 - Deposits973.371189.6722.22251.19328.7330.87 - Others64.0873.4914.6817.9922.8426.96 Operating Expenses561.34611.518.94140.44148.405.67 - Staff related354.25384.088.4285.6886.120.51 - Others207.09227.439.8254.7669.7927.45 NET INTEREST INCOME722.68855.3618.36160.42232.9145.19 OPERATING PROFIT620.32635.372.43170.26184.268.22 Provisions & Contingencies 570.62402.35[29.49]35.82148.75315.27 Provision for Taxes[23.29] †31.463.97†[8.28] NET PROFIT72.99201.56176.15130.4743.80 † After reversal of provision of earlier years of Rs. 54.54 crore [Rs.35.19 crore]
NON INTEREST INCOME [Amount in Crore]2005-062006-07 Variation [%] Mar ’06 [Q4] Mar ’07 [Q4] Variation [%] Profit on sale of Investment125.3339.45[68.52]11.893.23[72.83] Profit on sale of fixed assets56.320.0056.320.00 Commission Income87.44125.2043.1825.0431.1624.44 Exchange earned on Forex25.2630.7621.778.3011.7641.69 Process Fee22.5928.3725.597.5410.0833.69 Other Income34.6937.447.9313.2515.1314.19 Recovery in w/off Investment29.985.42[81.92]1.650.00 Recovery in w/off Accounts77.38155.60101.0931.3037.0218.27 Profit/Loss on Revaluation of Inv. [19.96][30.72]53.91[5.01][8.63] Total439.03391.52[10.82]150.2899.75[33.62]
BREAK UP OF NON INTEREST INCOME [Amount in Rs. Crore]2005-062006-07 Mar ’06 [Q4] Mar ’07 [Q4] Commission Banking – DD/LC/BG etc.70.66105.2018.6124.92 Third part products – Ins/MF/Franking4.825.521.711.69 Govt. Business4.796.002.822.35 SDV locker rent7.178.481.902.20 Total commission income87.44125.2025.0431.16 Exchange25.2630.768.3011.76 Process fee22.5928.377.5410.08 † 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 2006-07 Mar ’06 [Q4] Mar ’07 [Q4] Other income Profit from sale of investments125.3339.4511.893.23 Profit from revaluation of investments †[19.96][30.72][5.01][8.63] Dividend income1.602.120.210.15 Profit from sale of fixed assets56.320.0656.350.06 Incidental changes7.7010.582.604.09 Supervision charges4.425.421.651.98 Others20.9723.7410.408.85 Total other income196.3850.6578.099.73 Recovery in written off advances77.38155.6031.3037.02 Recovery in written off investments29.980.950.010.00 Total non interest income439.03391.53150.2899.75 † Regrouping done from provision to Non Interest income
PROVISIONS & CONTINGENCIES [Amount in Rs. Crore]2005-062006-07 Variation [%] Mar ’06 [Q4] Mar ’07 [Q4] Variation [%] Non Performing Loans236.92287.8921.51[3.16]112.13 Frauds & Other Assets[0.25][0.86]244.000.82[0.34] Investments270.6983.02[69.33]42.3323.3281.52 Fringe Benefit Tax1.801.39[22.78] Income Tax incl. DTA[23.26]†30.074.00†[8.28] Prov for Standard Assets42.9232.86[23.44][4.71]13.18 Country Risk0.000.200.500.24108.33 Contingent Liabilities[1.45][0.76][47.59]0.000.20 TOTAL527.38433.81[20.74]39.78140.47253.11 † After reversal of provision of earlier years of Rs. 54.54 crore [Rs.35.19 crore]
RESOURCES [Amount in Rs. Crore]2004-052005-062006-07 Growth [%] Current2123.612380.573281.2637.84 Savings6660.067930.639043.5914.03 Term12112.8813311.8615365.0615.42 Total20896.5523623.0627689.9117.22 Share of Demand Deposits (CASA) 42.0343.6544.51 Borrowings334.980.99450.94
ASSET QUALITY [Amount in Rs. Crore]2005-062006-07 2005-06 Q4 2006-07 Q4 NPA Provision Opening Balance536.17499.46555.73437.86 - Additions236.92287.89[3.16]112.13 - Reductions273.62414.7853.11177.42 Closing Balance499.46372.58499.46372.58 Gross NPA to Gross Advances [%]6.443.986.443.98 Net NPA to Net Advances [%]3.041.993.041.99 Provision Cover [%]52.6150.0552.6150.05
CAPITAL ADEQUACY [Amount in Rs. Crore]2004-052005-06 2006-07 Eligible Tier I Capital727.11848.231086.81 Eligible Tier II Capital578.67662.97979.37 Eligible Total Capital1305.781511.202066.18 Total Risk Weighted Assets10967.2014225.2917941.01 Core CRAR6.635.966.06 CRAR on Tier II Capital5.284.665.46 CRAR11.9110.6211.52 Networth727.11848.231086.81
FINANCIAL RATIOS 2005-062006-07 Mar ’06 [Q4] Mar ’07 [Q4] Cost of Funds [%]4.665.194.665.45 Yield on Funds [%]7.467.846.988.08 Interest Income as percentage to AW funds7.037.476.627.72 Non Interest Income as percentage to AW Funds1.891.382.391.32 Interest spread to working funds2.883.022.473.07 Dividend [%]0.008.000.00
FINANCIAL RATIOS 2005-062006-07 Mar ’06 [Q4] Mar ’07 [Q4] Operating Profit as percentage to working funds2.482.242.702.43 Operating Profit (Excl. profit on sale of fixed assets) as percentage to working funds 220.127.116.112.43 Net Interest Margin [NIM] %2.953.002.623.27 Earning Per Share Rs.2.547.034.551.53 Book Value (excluding revaluation reserve) Rs.29.5737.8929.5737.89 Cost / Income Ratio [%]47.5049.0444.4844.61 Coverage Ratio [%] – [Networth-NNPA] / Total Assets]1.562.261.532.26
PRODUCTIVITY RATIOS 2005-062006-07 Mar ’06 [Q4] Mar ’07 [Q4] Business Mix [Rs. in Crore]38370.8546372.9838370.8546372.98 Business Mix Per Employee [Rs. in Crore] 3.644.473.784.58 Profit Per Employee [Rs.in Lakhs]0.721.991.280.43 Business Per Branch [Rs. in Crore]36.1143.6237.5144.76 Profit Per Branch [Rs. in Lakhs]7.1319.4612.754.23
NEW INITIATIVES AND THRUST EXPANDING 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 THRUST TECHNOLOGY: 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 THRUST TECHNOLOGY: 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 THRUST AUGMENTING 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 THRUST GARNERING 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 THRUST GARNERING 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 THRUST PRIORITY 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 THRUST HUMAN 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: 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: 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.