Deutsche Bank on Monday said its standalone net profit from India operations was Rs 630 crore for the year ended March 31, up 41 per cent from Rs 446 crore, a year earlier. The rise was aided by sharp decline in provisions on the back of improved asset quality.
Net interest income, or the difference between interest income and interest expense, grew 11 per cent to Rs 1,419 crore during the year. Total income expanded 19 per cent year-on-year to Rs 2,861 crore.
Pre-tax profit of the bank stood at Rs 1,190 crore, up 43 per cent from a year ago.
Earnings numbers does not include financial performance of the bank’s business units in equity broking, asset management, primary dealership, corporate financing and outsourcing space.
“Our financial results reflect the tremendous momentum built by our businesses in India. Our corporate and investment banking businesses have achieved market leading positions in several verticals like equity capital markets, debt capital markets, customer foreign exchange, and transaction banking,” said Gunit Chadha, chief executive of the bank in India.
In 2010-11, Deutsche Bank made Rs 85.84 crore provisions, down 72 per cent from a year earlier. Improvement in asset quality, particularly in the bank’s retail business, led to lower provisions, a senior official of Deutsche Bank said.
The gross non-performing asset ratio declined 75 basis points during the year to 1.24 per cent, while the net bad loan ratio narrowed to 0.23 per cent from 0.79 per cent earlier.
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Advances were Rs 14,294 crore, up 10.6 per cent on year. Deposits declined 0.3 per cent to Rs 14,646.37 crore. The bank closed last financial year with a balance sheet size of Rs 28,680 crore.
The bank’s capital adequacy ratio was at 15 per cent as on March-end. The bank had infused Rs 330 crore capital in 2010-11, fourth time since 2007, taking its capital base to over Rs 5,500 crore.