BANKING
| Corporate, retail banking help boost Indian Bank's profit Sun, 24 Apr 2011 |
| CHENNAI: Indian Bank continued its creditable performance during the year ended March 31, 2011 in all the key parameters. The directors have proposed a dividend of Rs. 7.50 per share of Rs. 10. It paid a dividend of Rs. 6.50 in the previous year. Addressing presspersons here on Saturday, T. M. Bhasin, Chairman and Managing Director, said the bank registered a growth of 19.8 per cent in its operating profit at Rs. 3,292 crore against Rs. 2,747 crore in the previous year on a healthy growth in net interest income at Rs. 9,361 crore against Rs. 7,714 crore. Total income improved by 16.8 per cent to Rs. 10,543 crore from Rs. 9,031 crore. Total expenditure, excluding provisions and contingencies, stood at Rs. 7,251.23 crore against Rs. 6,283.42 crore with interest expenditure accounting for Rs. 5,324.92 crore (Rs. 4,553.18 crore). The bank has provided a sum Rs.92 crore towards transitional liability on a proportionate basis on employee benefits, Rs. 33.20 crore towards part of the additional gratuity fund requirement and a net sum of Rs. 153.06 crore towards additional pension fund liability. After taking into account these provisions, the net profit has risen by 10.2 per cent to Rs. 1,714.07 crore from Rs.1,554.99 crore. Corporate banking and retail banking contributed significantly to the rise in net profit. Earnings per share improved to Rs. 38.79 from Rs. 35.09 and the book value to Rs. 184.44 from Rs. 156.66. The overall business of the bank registered a growth of 20.3 per cent at Rs. 1,81,530 crore against Rs. 1,50,886 crore with deposits accounting for Rs. 1,05,804 crore (Rs. 88,228 crore) and advances Rs. 75,726 crore (Rs.62.568 crore), Mr. Bhasin said. Priority sector advances grew by 19.9 per cent to Rs. 25,.969 crore. The net interest margin at 3.86 per cent (3.55 per cent), was the highest in the banking industry, Mr. Bhasin said. The bank had made strenuous efforts to bring down non-performing assets and the ratio of net non-performing assets (NPA) to net advances stood at 0.53 per cent. During the year, total NPA recovery was Rs. 756.58 crore. The bank will continue its focus on recovery of NPAs and 2011-12 will be ‘the year of recovery', Mr. Bhasin said. The capital adequacy ratio was comfortable at 13.56 per cent as per Basel II norms against 12.71 per cent in the year-ago period. Financial inclusion Under the financial inclusion plan 2010-12, the bank covered 1,010 villages as on March 31, 2011 and 1.53 lakh no-frill accounts were opened. Credit to MSME sector registered a growth of 15.8 per cent at Rs. 9.681 crore. Under branch expansion, the bank opened 104 branches in India and a branch at Jaffna (Sri Lanka) taking the total to 1,860. |
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