Indian Bank has posted a growth of 40.58 per cent in its net profit during the half-year ended September 30, 2009, at Rs. 703.65 crore against Rs. 500.55 crore in the year-ago period. The operating profit rose by 28.1 per cent to Rs. 1,184.35 crore from Rs. 924.43 crore.

Addressing presspersons here on Friday, M. S. Sundara Rajan, Chairman and Managing Director, said the bank could increase its total income by 20.8 per cent to Rs. 4,404.77 crore from Rs. 3,645.92 crore. Interest income rose by 19.7 per cent to Rs. 3,817.41 crore from Rs. 3,189.93 crore in spite of credit offtake not picking up to the desired extent, he said.

The bank continued its focus on non-interest income and revenue from treasury operations during the half-year under reference rose sharply to Rs. 1,128.27 crore from Rs. 891.20 crore.

The overall business grew by 18.9 per cent to Rs. 133,987 crore as on September 30, 2009, from Rs. 112,706 crore as on September 30, 2008. Deposits rose by 23.9 per cent to Rs. 80,068 crore from Rs. 64.614 crore while gross advances increased by 12.1 per cent to Rs. 53,919 crore from Rs. 48,092 crore.

During the half-year, the bank recovered Rs. 343.02 crore form non-performing assets (NPA) and the net NPA stood at 0.18 per cent as on September 30, 2009.

The CMD said the bank had been successfully implementing the financial inclusion project in various places covering 4,637 villages and opening 21.08 lakh no-frills savings accounts. It has made a significant contribution in the field of micro finance and self-help group (SHG). The bank’s SHG portfolio stood at Rs. 1,595 crore as on September 30, 2009.

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