Corporate Reporter

Priority sector advances up

27 per cent

Outstanding credit rises by

30 per cent

CHENNAI: Indian Bank has reported a 32.8 per cent rise in its total business which stood at Rs. 1,06,691 crore as on June 30, 2008 against Rs. 80,341 crore as on June 30, 2007. Total deposits rose by 24.9 per cent to Rs. 62,215 crore from Rs. 49,812 crore while gross advances increased by 45.7 per cent to Rs. 44,476 crore from Rs. 30,529 crore. Addressing presspersons here on Monday, M. S. Sundara Rajan, Chairman and Managing Director, said the bank had excelled in all sectors with total income rising by 26.8 per cent to Rs. 1,744.99 crore in the first three months ended June 30, 2008 from Rs. 1,376.74 crore in the like period last year. The operating profit went up by 32.4 per cent to Rs. 436.63 crore from Rs. 329.73 crore.

However, the net profit was marginally higher at Rs. 217.62 crore against Rs. 212.03 crore due to higher allocation under provisions and contingencies to the tune of Rs. 169 crore against Rs. 49.70 crore in the same period in the previous year. The higher allocation was due to mark-to-market provisioning as the higher yileds on new loans have resulted in a depreciation in value of government securities issued earlier.

Priority sector advances of the bank increased by 27.2 per cent to Rs. 15,914 crore constituting 41.7 per cent of adjusted net bank credit. Mr. Sundara Rajan said the bank disbursed a sum of Rs. 1,301 crore as agriculture advances, benefiting 2.61 lakh farmers during the first quarter under reference. The outstanding credit registered a year-on-year growth of 30 per cent at Rs. 6,308 crore after providing debt waiver amounting to Rs. 457 crore and debt relief to the tune of Rs. 87.33 crore under the ‘Agricultural debt waiver and debt relief scheme 2008’. The bank also issued fresh loans to the beneficiaries of the scheme from July 1 and so far Rs. 11.74 crore had been provided to 4,452 farmers, the CMD said.