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Chennai-based Indian Bank closed the first quarter with a 52% increase in net profit and nearly 21% increase in total business as compared to the corresponding period in the previous fiscal.
"Despite the challenging economic environment, the bank has earned a net profit of Rs.331.66 crore and did a total business of Rs.1,28,701 crore (deposits plus advances) as against Rs.217.62 crore and Rs.1,06,691 crore posted during the corresponding period of the previous year," said the bank's chairman and managing director M.S. Sundara Rajan.
Its revenues rose to Rs.2,230.39 crore from Rs.1,744.99 crore earned in the year-ago period. "The net interest income rose to Rs.737.78 crore for the period ending June 30 from Rs.539.53 crore earned in the corresponding quarter last year. The net interest margin improved to 3.56% from 3.17%," Rajan said.
For the period under review, the bank's deposits stood at Rs.76,717 crore and advances at Rs.51,984 crore.
According to Rajan, the gross non-performing asset (NPA) was Rs.474.37 crore and the net NPA stood at Rs.205.89 crore. It was Rs.75.71 crore in the corresponding period the previous year.
But, Rajan played it down, and said: "There is nothing to get worried about the increase. It is due to the implementation of the Reserve Bank of India's guideline which does not permit banks to take into account the floating provision for calculation of net NPA."
He said the bank has restructured loans aggregating Rs.1,786.25 crore during the quarter. Indian Bank has plans to open 100 new branches and install 200 automated teller machines (ATM).
