Indian Bank has reported a net profit of Rs. 1,545 crore for the year ended March 31, 2010, up from Rs. 1,245.32 crore in the preceding year. The total business of the bank has since crossed the Rs. 1,50,000-crore mark. The bank has set itself a target of Rs. 2,25,000 crore business to be hit by March 2012.
Addressing a press conference here on Saturday, T. M. Bhasin, Chairman and Managing Director, said the operating profit of the bank rose by 33.64 per cent to Rs. 2,747 crore (Rs. 2,055.83 crore) during the period under review.
The bank has recommended a final dividend of Rs. 4 per share, making with the interim, a total of 6.50 per share. The dividend payment in 2008-09 was Rs. 5 per share. The bank has also recommended a dividend of 10 per cent for the period from April 2009 to March 2010 on the perpetual non-cumulative preference share capital of Rs. 400 crore held by the Central Government.
Total deposits at the end of March 2010 stood at Rs. 88,228 crore, up by 21.56 per cent. Gross advances stood at Rs. 62,658 crore, an increase of 20.89 per cent.
The ratio of CASA (current account and savings account) to total deposits improved to 33 per cent from 32.50 per cent in the previous year. Mr. Bhasin said the bank would aim at improving CASA to 34 per cent by March 2011.
The gross NPA (non-performing asset) was brought down to 0.81 per cent (at Rs. 510.11 crore) from 0.89 per cent in the previous year. Net NPA stood at 0.23 per cent (at Rs. 144.93 crore). The bank, according to Mr. Bhasin, is hoping to bring the net NPA to zero level by March 2012. The net interest margin improved to 3.71 per cent from 3.54 per cent in the previous year, he said. The capital adequacy ratio of the bank stood at 12.71 per cent with Tier-I capital at 11.13 per cent. This provided the bank enough headroom to raise Tier-II capital.
To a question, the CMD said the switchover to daily interest calculation on savings deposits would increase the effective interest on savings account to 3.50 per cent from 3.02 per cent.
The CMD said the focus of the bank in the current year would be on wooing youngsters into its fold. In this context, he said the bank would open five e-Indian branches. The bank would open branches in educational institutions such as IITs and IIMs.
Keywords: Indian Bank