Indian Bank has posted a 13.5 per cent increase in net profit in the first quarter of 2012-13, at Rs.462 crore as against Rs.407 crore in the year-ago period. Sequentially, the growth was 33.7 per cent as the bank had posted a net profit of Rs.345 crore in the last quarter of 2011-12.
The rise in net profit was possible due to the “good amount of recovery and, in general, the interest income has also been good,” Chairman and Managing Director T. M. Bhasin said here on Monday.
The recovery is expected to be “similarly impressive” in the second quarter, too, he said, adding that the robust recovery of Rs.152 crore in the quarter ended June 30, as against about Rs.100 crore in first quarter of 2011-12, was on account of close tracking of the accounts. “We have formed recovery teams and made list of the accounts ready… iPad-based tracking of the account is being carried out by senior officials. It is on a moment-to-moment basis,” he said, giving details of the reviewed financial results for the first quarter to presspersons.
Upgradation of non-performing assets accounts of Rs.256 crore resulted in the gross NPA going down to 1.66 per cent from 2.03 per cent as at March 2012. Net NPA also declined to 1.04 per cent from 1.33 per cent.
On the new provisioning guidelines for restructured accounts, Mr. Bhasin said they would not be a burden as the additional provisioning required was Rs.80 crore. The bank had sufficient provisioning, he said, adding that it was Rs.193 crore. A release said the provision coverage ratio was 75.08 per cent as against RBI’s stipulation of 70 per cent.
The performance highlights for the first quarter of 2012-13 include an increase of 14.5 per cent (year-on-year) in the total business at Rs.220,888 crore and a 15 per cent growth in deposits, which at the end of June stood at Rs.127,012 crore. Credit deposit ratio was at 73.9 per cent as against 74.7 per cent in June 2011. Led by year-on-year growth of 21.3 per cent in interest income, total income rose by Rs.566 crore to Rs.3,597 crore during the quarter under review. Advances at Rs.93,876 crore went up by 13.8 per cent from Rs.82,510 crore on June 30, 2011.