Milestone of India - PSU Indian Bank net profit moves up.

CHENNAI: Indian Bank has reported a rise of 11.8 per cent in its net profit at Rs. 415.77 crore in the second quarter ended September 30, 2010, against Rs. 371.99 crore in the year-ago period. Total income increased by 17.7 per cent to Rs. 2,559.28 crore from Rs. 2,174.38 crore with net interest income rising by 37.75 per cent to Rs. 983 crore from Rs. 714 crore.

Addressing presspersons here after releasing the results, T. M. Bhasin, Chairman and Managing Director of the bank said corporate and retail banking contributed significantly to the revenue and profitability of the bank during the quarter under reference. The net interest margin (NIM) registered a sequential growth of 3.76 per cent in the second quarter against 3.71 per cent in the first quarter of the current financial year. With efforts in the recovery of non-performing loans and the effective utilisation of SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) (SARFAESI), the net non-performing assets ratio to net advances declined to 0.73 per cent in the second quarter from 0.76 per cent in the previous quarter, Mr. Bhasin said.

The provision coverage ratio was 83.27 per cent against the Reserve Bank of India's stipulated norm of 70 per cent, he said.

Total business stood at Rs. 167,980 crore as on September 30, 2010 against Rs. 133,987 crore in September 2009 showing a year-on-year growth of 25.4 per cent. Deposits registered a rise of 22.4 per cent at Rs. 98,007 crore against Rs. 80,068 crore while advances grew by 29.8 per cent to Rs. 69,973 crore from Rs. 53,919 crore as on September 30, 2009.

Under Financial Inclusion plan 2010-12, the bank had covered 20 villages with population above 2000 providing banking services. The bank had opened 23.93 lakh “no-frills” accounts throughout the country. Also two Microsate branches (specialised microfinance branch) were opened during the current year in Tamil Nadu to promote urban financial inclusion, Mr. Bhasin said.

During the current year the bank had disbursed Rs. 773.55 crore to 39,523 self-help groups (SHG) upto September 30, 2010 and the outstanding credit under micro finance to SHGs stood at Rs. 2,046.99 crore.