Indian Bank has reported a 9.5 per cent drop in its net profit at Rs. 1,581.14 crore for the year ended March 31, 2013, against Rs. 1,746.97 crore in the previous financial year. Total income, however, has risen to Rs. 15,179.41 crore from Rs. 13,411.15 crore.
Addressing presspersons here on Thursday, T. M. Bhasin, Chairman and Managing Director of the bank attributed the lower profit to higher provisioning towards pension, gratuity and wage revision.
In accordance with the guidelines of the Reserve Bank of India on second option pension and enhancement in gratuity limits pertaining to existing employees, the bank had allocated Rs. 162.65 crore towards pension, and Rs. 33.20 crore towards gratuity.
He said that the net interest margin had been consistently maintained at above the 3 per cent level and it stood at 3.09 per cent for 2012-13.
On the NPA (non-performing assets) front, the bank had made a recovery of Rs. 653 crore in addition to upgradation of NPAs to standard accounts to the tune of Rs. 312 crore. The gross NPA ratio stood at 3.33 per cent. The net NPA was 2.26 per cent at the end of March 31, 2013, he said. The provision coverage ratio was 60.14 per cent.
The global business of the bank registered a growth of 17.52 per cent to Rs. 2.49 lakh crore. Total deposits stood at Rs. 1.42 lakh crore and advances at Rs. 1.07 lakh crore. The bank has recommended a dividend of Rs. 6.60 per equity share for 2012-13.
