ING Vysya Bank

October 2006

Performance highlights : H1 2006-07

Core business performance improved
15% increase in Net Interest Income to Rs 263 crore in H1 2006-07
from Rs 229 crore in H1 2005-06
Non-interest income
Other Income (including CEB and treasury) is Rs 111 crores in H1
2006-07 as against Rs 98 crores in H1 2005-06
Profit
Rs 56 crore after tax profit in H1 2006-07 compared to a profit of
Rs 29 crore in H1 2005-06, an increase of 93% (post-tax profit on
sale of stake in Bharat Overseas Bank Rs 26 crores)

Performance Highlights : H1 2006-07

Growth in advances
Growth of 7% - from Rs 9,368 crores to Rs 10,041 crores
Primarily in consumer banking and SME segments
And deposits
CASA grew from Rs 3,222 crores to Rs 3,936 crores increase of 22%
Investments remained relatively flat at approximately at Rs 4,200 crores
Network
The number of branches was 393 as at 30 September 2006 with the
number of ATMs at 127 (including 11 Self Bank ATMs)

Performance Highlights : H1 2006-07

An amount of Rs 78 crores (coupon rate of 9.70 % payable annually

and a tenor of 10 years) was raised as Tier II capital through unsecured
sub- ordinated bonds in August 2006 by way of private placement. The
Bonds were fully subscribed by ABN Amro Bank

The Bank had sold 23,09,999 shares of face value of Rs. 10 invested in
Bharat Overseas Bank. The transaction resulted in a post tax profit of
Rs 26.4 crores

Interim dividend of Rs. 2.76 crores was received from the wholly owned
subsidiary ING Vysya Financial Services Ltd during the quarter

Balance Sheet
Sep 30
2006

June 30
2006

Mar 30
2006

Sep 30
2005

Y-on-Y
Growth %

Liabilities
Capital and Reserves
Deposits
Borrowings
Other Liabilities & Provisions

1,076
12,880
1,131
1,650

1,035
13,106
739
1,515

1,020
13,335
1,107
1,304

1,043
12,902
732
1,121

3%
0%
55%
47%

Total

16,737

16,395

16,767

15,798

6%

Assets
Cash and bank balances with RBI
Advances
Investments
Fixed Assets
Other Assets

1,465
10,041
4,209
404
618

1,507
9,578
4,268
406
636

1,123
10,232
4,372
405
634

1,018
9,368
4,451
310
651

44%
7%
-5%
30%
-5%

Total

16,737

16,395

16,767

15,798

6%

Particulars

Amounts in Rs crores

Profit and Loss

Particulars

YTD
Q2
YTD
Q2
Sep 30 Sep 30 Sep 30 Sep 30
Y-on-Y
2006
2006
2005
2005 Growth %

Interest Income
Interest Expenses
Net Interest Income
Other Income
INCOME

660.1
399.9
260.2
128.6
388.7

338.9
201.7
137.2
85.7
222.9

600.4
372.0
228.4
101.9
330.3

311.3
184.8
126.5
60.8
187.2

10%
8%
14%
26%
18%

Employee Cost
Other operating exp
EXPENSES

124.6
134.0
258.6

64.4
71.9
136.3

109.4
115.5
224.8

58.1
59.3
117.4

14%
16%
15%

Operating Profit
Provisions and contingencies
Profit before Tax (PBT)
Provision for Taxes

130.1
54.0
76.1
19.9

86.5
33.6
53.0
11.6

105.5
57.7
47.8
19.0

69.8
38.9
30.9
11.2

23%
-6%
59%
5%

56.2

41.4

28.9

19.7

94.6

Profit After Tax (PAT)

Amounts in Rs crores

Positive quarterly momentums

Net profit
2005

50

Net Interest Margin

2006

4.0%
41

40

3.0%

173%

30
20
20
10

3.8%

3.6%
3.3%

3.0%

2.0%

15
9

1.0%

Q1 2005

Q2 2005

Q1 2006

Q2 2006

0.0%
Q1 2005

Yield on advances
9.2%

Q1 2006

5.3%

5.2%

9.1%
5.0%

9.0%
8.6%

5.0%
4.9%

8.5%

4.8%

8.0%

4.6%

Q1 2005

Q2 2005

* Ratios and numbers are for the quarter only

Q2 2006

Cost of deposits
9.4%

9.5%

Q2 2005

Q1 2006

Q2 2006

Q1 2005

4.8%

Q2 2005

Q1 2006

Q2 2006

Key parameters
The Net NPA to Net Advances ratio was 1.57 % as at end of
Q2 06, as against 1.98% at end of Q2 05
The Credit-Deposit Ratio (excluding IBD) stood at 82%
compared to 77%
Cost to income ratio was 67% as compared to 68% a year ago
The Capital Adequacy Ratio (CAR) stood at 11.36% compared
to 10.95%

Quarterly Growth Trends - Deposits

14,000

13,106

12,902
13,335

Amount in Rs crores

13,000
12,000

12,606

12,880

12,566

12,569

11,000

10,474

10,000

10,643

10,033
9,000
8,000
QE June

FY 2006-07

QE September

FY 2005-06

Deposit figures are quarter end figures of total deposits

QE December

FY 2004-05

QE March

Composition of customer deposits

9,680

10,000
31%

0.35

8,944
0.3

8,000
Amount in Rs crores

25%
0.25
6,000

0.2

0.15

4,000

0.1

2,371
2,000

1,838

1,565

1,384

0.05

0
September-06
Savings

Current

CASA % - Aggregate CASA / Total Aggregate deposits

September-05
Term

Quarterly Growth Trends - Advances

11,000

10,041
Amount in Rs crores

10,000

9,578

10,232
9,726

9,000

9,011

9,368
9,081

8,000

8,177

7,000

7,157
6,000

6,618

5,000
QE June

FY 2006-07
Advance figures are quarter end net figures

QE September

FY 2005-06

QE December

FY 2006-07

QE March

Capital Adequacy Ratio

12.00%

11.36%

10.95%

CAR

10.00%

8.00%

7.68%

7.48%

Tier I

6.00%

3.88%

4.00%

3.28%

2.00%

Tier II

0.00%
September-06

FY 2006-07

September-05

FY 2005-06

FY 2004-05