Indian Bank has registered a six per cent growth in net profit at Rs 496.68 crore for the second quarter ended September 30, as against Rs 469 crore in the comparable previous year quarter.
The total income was Rs 3,773.75 crore during the quarter under consideration against Rs 3,377 crore in the same period a year ago.
According to T.M. Bhasin, Chairman and Managing Director, had it reversed the depreciation account, the growth in net profit would have touched 12 per cent. Total business of the bank during the quarter rose to Rs 2.27 lakh crore (Rs 2.02 lakh crore) . CASA deposits grew to Rs 37,994 crore (Rs 34,227 crore).
Gross advances were at Rs 95,936 crore (Rs 86,372 crore); Credit Deposit ratio was at 73.13 per cent (74.3 per cent). Net interest margin shrank to 3.12 per cent (3.76 per cent).
The bank's restructured loan portfolio wa around Rs 10,373 crore, including Rs 2,300 crore from the power sector and Rs 1,700 crore from the textile sector. Its gross non-performing assets went up to 2.06 per cent (1.21 per cent). Net NPA was 1.33 per cent (0.69 per cent).
The bank’s board has approved the proposal to raise Rs 1,000-crore through tier-II bonds.
According to Bhasin, the bank’s capital adequacy ratio will improve to 14.03 per cent if its half yearly profit is added, while the Basel II requirement is 12.96 per cent, there by leaving a Rs 7,800-crore headroom for the bank.
ravikumar.ramanujam
@thehindu.co.in