Global Trust Bank: Operating profits up 113% - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Global Trust Bank: Operating profits up 113%

Nov 6, 2000

Global Trust Bank (GTB) has doubled its operating profits in the 2QFY01 fueled by higher operating margins. The operating profit margins of the bank improved by 700 basis points due to lower interest cost.

(Rs m) 2QFY00 2QFY01 Change
Operating Income 1,422 2,125 49.4%
Other Income 482 157 -67.4%
Interest Expenses 1,187 1,625 36.9%
Operating Profit (EBDIT) 235 500 112.7%
Operating Profit Margin (%) 16.5% 23.5%  
Other expenses 185 246 33.1%
Depreciation 110 110 0.3%
Profit before Tax 423 302 -28.6%
Other provisions 102 -39  
Tax 78 26 -66.3%
Profit after Tax/(Loss) 243 314 29.4%
Net profit margin (%) 17.1% 14.8%  
No. of equity shares (m) 104.0 121.4  
Diluted Earnings per share* 8.0 10.4  
P/E (at current price) 11 8  

However, profits of the bank actually declined by 20% excluding the provisions for depreciation in the value of investments (The investment portfolio of the bank has been classified in terms of RBI guidelines). Also the decline in other income by 67% led to lower growth in profits.

During the first half ended September 2000 the bank's advances witnessed an increase of 33% and deposits grew by 44%. Its credit/deposit ratio however, declined to 50% (from 55% in 1HFY00). GTB has healthy capital adequacy ratio of 14.1% as on September 2000.

At the current market price of Rs 86 GTB is trading at a P/E multiple of 8 times its 2QFY01 annualised earnings with a Price/Book value ratio of 1.7 times. The business drivers of the bank in future would be its thrust on retail banking, investment banking and e-commerce initiatives.

Comparative Valuations
Particulars HDFC Bank ICICI Bank UTI Bank
Market Price (Rs) 250.0 124.0 39.5
P/E (x) 30.9 20.3 6.8
Price/Book value (x) 8.1 1.8 2.1

Equitymaster requests your view! Post a comment on "Global Trust Bank: Operating profits up 113%". Click here!


More Views on News

Union Bank of India Swings to Profit as Asset Quality Improves (Views On News)

Jun 8, 2021

Union Bank's share price up 2% post March quarter earnings.

PNB Reports Profit in March Quarter After Three-Way Amalgamation (Views On News)

Jun 8, 2021

Shares of PNB fell over 2% yesterday despite healthy quarterly results.

Bank of Baroda Shares Plunge 5% After Reporting Huge Loss (Views On News)

May 31, 2021

The stock fell after the bank posted a loss due to higher tax expenses.

India's Largest Bank, SBI Posts Record Profit in Q4 (Views On News)

May 22, 2021

All you need to know about the bank's latest financial results.

How Did Canara Bank Perform in Q4FY21? (Views On News)

May 19, 2021

Key takeaways from Canara Bank Q4FY21 results.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


  • Track your investment in GLOBAL TR. BANK with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks