8
FINANCIAL PERFORMANCE REVIEW
for the year ended 31 March 2012
PERFORMANCE FINANCIAL YEARS 2012 AND 2011 a. Profit and Loss
a.1 Net Revenue
Net interest income increased by ` 2.771 billion or 58 to ` 7.522 billion in the current year.
2012 2011
2012 vs 2011
`
m contribution
`
m contribution
`
m contribution
Placement with Banks, including RBI
49 0.3
818 20.6
768 94.0
Investment securities 10,333
57.5 6,302
49.9 4,031
64.0 Loan and Advances
7,589 42.2
3,539 29.5
4,050 114.4
Total Interest Income 17,971
100.0 10,659
100.0 7,313
68.6
Interbank Borrowings 4,103
39.3 2,331
54.7 1,772
76.0 Demand Deposit
- 0.0
- 0.0
- Savings Account
39 0.4
14 0.0
25 177.9
Fixed Deposits 6,308
60.4 3,563
45.3 2,745
77.0
Total Interest Expense 10,450
100.0 5,908
100.0 4,542
76.9 Net Interest Income
7,522 4,751
2,771 58.3
Other Income 3,110
961 2,149
223.5 Net Revenue
10,632 5,712
4,920 86.1
The Bank’s gross interest income rose 68.6 from a year ago to ` 17.97 billion. The increase in interest income from loans and advances was due to higher loan margins complemented by an increase in the average portfolio size. Interest income
from Investment securities grew proportionate to the higher volumes of investments.
Interest expense rose 76.9 over previous year to ` 10.45 billion. The rise in interest expense was on account of higher volume and rate of customer deposits and inter bank borrowings.
The Bank’s Other income predominantly comprises fees. Fee income at ` 4.5 billion contributed to 69 of the operating profit for the year, originating from diverse business segments including loan processing, trade transactions on and off
balance-sheet, remittance services, and bancassurance business.
The Bank continues to rely on steady growth in business volumes and basic banking business as a part of its strategic focus. Trading profits from the bonds, derivatives and foreign exchange segments have been negligible over the last two financial
years.
a.2 Operating Expenses 2012
2011 2012 vs 2011
`
m contribution
`
m contribution
`
m contribution
Staff Expenses 1,943
47.1 1,252
45.9 691
55.2 Occupancy Charges
473 11.5
404 14.8
69 17.1
Others 1,705
41.4 1,070
39.3 635
59.3
Total Operating Expenses 4,121
100.0 2,726
100.0 1,395
51.2
Operating expenses continued to grow in line with business growth. The Bank has expanded its product suite catering to a wider range of customers across various sectors. At the same time, it has kept a tight control over costs. The Cost Income
ratio was 39 as compared to 48 for the previous financial year.
DBS Bank Ltd., India Annual Report 2011-12 9
FINANCIAL PERFORMANCE REVIEW
for the year ended 31 March 2012
b. Balance Sheet
