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GTB: FY01 net down by 26%

Apr 30, 2001

Global Trust Bank (GTB) has reported a disappointing results for the year ended March '01. The bank's net profits dropped by 26% as a result of higher provision in the current year.

(Rs m) FY00 FY01 Change
Interest Income 6,955 8,975 29.0%
Other Income 1,836 1,644 -10.4%
Expenditure 5,072 6,972 37.5%
Operating Profit (EBDIT) 1,883 2,003 6.4%
Operating Profit Margin (%) 27.1% 22.3%  
Other Expenses 1,239 1,640 32.4%
Profit before Tax 2,480 2,008 -19.1%
Provisions and contingencies 990 1,099 11.1%
Tax 404 105 -74.0%
Profit after Tax/(Loss) 1,086 803 -26.0%
Net profit margin (%) 15.6% 9.0%  
No. of Shares (eoy) (m) 104.0 121.4  
Diluted Earnings per share 9.0 6.6  
P/E (at current price)   4.1  

During the year, the bank's operating margins declined on the back of high cost of deposits and low proportion of retail assets.

GTB's advances and deposits witnessed a growth of 27% and 24% respectively. Its net NPA to advances ratio increased considerably to 3.75% in FY01 from 0.9% in the previous year. This was due to losses made on account of high exposure to capital markets.

At the current market price of Rs 27, GTB is trading at a P/E multiple of 4 times its FY01 earnings. The bank's valuations are comparatively low than its peers in the sector.

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