Indian Bank registers 61 percent profit rise in Q3

Wednesday, 16 January 2008, 00:50 IST
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Chennai: Chennai-based Indian Bank registered a 61.44 percent rise in its net profit of 3.07 billion for the third quarter that ended Dec 31, compared to 1.90 billion for the corresponding period last year. Announcing the results to the media here Saturday, M.S. Sundara Rajan, chairman and managing director, said: "The total business during the third quarter grew to 900.15 billion (deposits 533.17 billion, advances 366.98 billion) from 726.17 billion (deposits 451.57 billion, advances 274.60 billion) posted during the corresponding period of the previous year." For the nine month period, the bank has posted a total income of 45.45 billion and a net profit of 7.67 billion as against 34.54 billion and 5.24 billion earned during the corresponding period of the previous fiscal respectively. "The bank has targeted 20 percent growth in deposits and 25 percent growth in advances. The performance is in line with the target," Rajan said. He said the sudden jump in income during the nine-month period is due to recoveries of non-performing assets (NPA). Indian Bank had recovered 4.52 billion of NPA during the period under review and the net NPA fell to 0.21 per cent of the net advances. At a time when the banking sector is worried about the increasing default in the retail portfolio, Rajan said the NPA in the retail loan is around 2 percent of the total portfolio of 71 billion. In order to have the retail NPA under tight leash the bank has centralised loan processing and the branches act as the loan disbursement centre.
Source: IANS