By IANS
Chennai : Chennai-based Indian Bank registered a 61.44 percent rise in its net profit of Rs.3.07 billion for the third quarter that ended Dec 31, compared to Rs.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 Rs.900.15 billion (deposits Rs.533.17 billion, advances Rs.366.98 billion) from Rs.726.17 billion (deposits Rs.451.57 billion, advances Rs.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 Rs.45.45 billion and a net profit of Rs.7.67 billion as against Rs.34.54 billion and Rs.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 Rs.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 Rs.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.