BANKING
| Indian Bank net up 6 percent at Rs 497 cr Sun, 21 Oct 2012 00:04:00 +0530 |
| Business Standard Economy Policy News Public sector lender Indian Bank on Saturday reported a rise of about six per cent in net profit for the quarter ended September 30 at Rs 497 crore, against Rs 469 crore a year ago. T M Bhasin, chairman and managing director of Indian Bank, said the bank could have reported 12 per cent growth in net profit had it reversed the depreciation account. Total income rose to Rs 3,774 crore during the quarter from Rs 3,377 crore in the year-ago period Total business of the bank rose to Rs 2.27 lakh crore, compared with Rs 2.12 lakh crore in March 2012, registering a growth of 14.27 per cent. Current and savings accounts (CASA) deposits improved to Rs 37,994 crore in September from Rs 36,866 crore in March 2012. Credit deposit ratio was at 73.13 per cent. Net interest margin (NIM) was at 3.21 per cent in the second quarter against 3.3 per cent in the fist quarter. “The Bank has headroom available to raise Rs 7,800 crore through tier-II bonds,” said Bhasin. During the current year, the Bank got board’s approval to raise Rs 1000 crore tier II bonds. Gross non-performing assets (NPA) to gross advance ratio of the bank was at 2.06 per cent against 2.03 per cent as on March 31, 2012. Net NPA to net advances was at the same level as of March 2012 at 1.33 per cent. The bank recorded a recovery of Rs 307 crore in the first half of the current financial year. It wrote off Rs 103 crore which are doubtful, said Bhasin. The bank’s structural book is around Rs 10,373 crore and the bank made provision of Rs 196 crore. The structured book includes Rs 2,300 crore for power sector and Rs 1,700 crore for textile. On the outlook he said the bank had set a target of around 16-17 per cent in loan book and NIM by 3.25 per cent. |
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