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Indian Bank reported a 10.5 per cent growth in net profits at Rs 407 crore for the first quarter of 2011-12 compared with Rs 368 crore for the same period last year.
Addressing a press conference Mr T.M. Bhasin, Chairman and Managing Director, Indian Bank, said, there is a pressure on net interest margins with shift of deposits from savings accounts to term deposits.
Close to 3.5 per cent of saving deposits have moved to term deposits, he said.
“We expect to maintain NIM at 3.5 per cent for the second quarter of the current financial year,” he said.
On asset quality, he said, slippages during the first quarter were Rs 166 crore compared with Rs 830 crore for the same period the previous year.
Total business rose to Rs 1.9 lakh crore (Rs 1.59 lakh crore). Both deposits and advances reported a growth of 21 per cent to Rs 1.10 lakh and Rs 91,000 crore respectively.
Earning per share was at Rs 36.80 (annualised) against Rs 33.16 (annualised).
Medium-term notes
Indian Bank intends to raise medium term notes worth $350 million, depending on the overseas market conditions, next week.
Base rate
“We may raise our base rate by 25 to 50 basis points after our asset liability committee meeting today,” he said. Indian Bank's base rate is currently at 10.25 per cent. The bank's share closed at Rs 225.50 today on the BSE, down 0.60 per cent against the previous close.
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