Financial Daily from THE HINDU group of publications
Tuesday, Apr 27, 2004
Financial Daily from THE HINDU group of publications Tuesday, Apr 27, 2004 |
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Corporate Results
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Public Sector Banks Money & Banking - Public Sector Banks Indian Bank net doubles to Rs 406 cr Our Bureau
Mr M.B.N. Rao
Chennai , April 26 INDIAN Bank's net profit for the year 2003-04 has more than doubled to Rs 405.75 crore, from Rs 188.83 crore for 2002-03. The bank's operating profit rose by 36 per cent to Rs 802.46 crore from Rs 590.25 crore previously. The bank also recovered Rs 320 crore from accounts classified as `non-performing'. Addressing a press conference, Indian Bank's Chairman and Managing Director, Mr M.B.N. Rao, said that in the current year, more cash recoveries from major default accounts would happen. The bank has three big NPA accounts, each upwards of Rs 100 crore. Mr Rao said that the bank could come out with its maiden public issue in the current year, but a decision on that was yet to be taken. He said that issues such as pricing the shares, quantum of funds to be raised through the IPO and return of capital to the Government would all be looked at in totality at a later stage. Mr Rao said that the bank's NPA cover — the ratio of provisions to NPAs — stood at 68 per cent as at March 31, 2004, compared to 50.36 per cent a year ago. Net NPAs have come down to 2.71 per cent from 6.15 per cent last year. The sharp rise in NPA cover indicates that the sharp fall in NPAs has come about by heavy provisioning. This is also reflected in the fact that the net profit is only half of the operating profit — the other half has gone towards provisions. In making recoveries last year, the RBI-sponsored one time settlement scheme was a big help — the bank recovered Rs 197.25 crore through the scheme, which is around 60 per cent of the total recoveries made last year. During 2003-04, the bank's turnover (deposits plus advances) increased to Rs 45,379 crore from about Rs 40,000 crore in the previous year. Gross credit increased by Rs 1,782 crore, against Rs 970 crore in the previous year. Mr Rao said that the bank was on the verge of announcing the vendor selected for networking the bank's branches.
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