Operating profit up 55 per cent in Q2
CHENNAI: Indian Bank has reported an all-round improvement in its performance in the second quarter ended September 30, 2008 with the net profit rising by 14.27 per cent to Rs. 282.93 crore from Rs. 247.59 crore in the year-ago period. The operating profit rose by 55.14 per cent to Rs. 532.80 crore from Rs. 343.44 crore.
Addressing presspersons here on Saturday, after releasing the results, M. S. Sundara Rajan, Chairman and Managing Director of the bank said a significant rise in net interest income, improvement in yield on advances and a reduction in interest expenditure and low cost deposits were some of the factors contributed to the good performance.
Total business of the bank rose by 30.47 per cent year-on-year and stood at Rs. 1,12,706 crore as on September 30, 2008. While deposits rose by 20.2 per cent to Rs. 64,614 crore, advances increased by 47.3 per cent to Rs. 48,092 crore. The focus on low-cost deposits resulted in a reduction in cost of deposits to 6.10 per cent for the quarter ended September 30, 2008 as compared to 6.24 per cent in the previous quarter, Mr. Sundara Rajan said.
Total income of the bank improved by 27.3 per cent to Rs. 1,900.93 crore in the second quarter from Rs. 1,493.13 crore in the year-ago period. Interest income was up by 34.26 per cent to Rs. 1,688.15 crore from Rs. 1,257.38 crore against the backdrop of strong growth in advances.
Priority sector advances stood at 17,266.61 crore as on September 30, 2008 registering a growth of 28.6 per cent compared to Rs. 13,423.98 crore in September 2007.
With constant monitoring of standard assets, slippage to NPA category was contained and the net NPA stood at Rs. 85.26 crore as on September 30, 2008 constituting 0.18 per cent of net advances.
The capital adequacy ratio as per Basel II norms stood at 11.27 per cent (including Tier I capital adequacy of 10.10 per cent) as on September 30, 2008. Total branches including overseas branches stood at 1,575 as on September 30, 2008.