The Hindu Business Line : Indian Bank's Q4 profit up 69%

JUBILEE DIVIDEND: Dr K.C. Chakrabarty (left), CMD, Indian Bank, and Mr M.S. Sundara Rajan, Executive Director, at a press conference in Mumbai on Monday. - Shashi Ashiwal

Mumbai April 23 Strong growth in net interest income and operating profits helped Indian Bank post a 69.09 per cent rise in net profit at Rs 235.31 crore in the fourth quarter ending March 31, 2007 against Rs 139.16 crore in the corresponding quarter the previous year.

In 2006-07, the net profit grew by 50.6 per cent to Rs 759.77 crore against over Rs 504.48 crore last year.

Total income increased to Rs 1563.61 crore (Rs 1092 crore) and operating profits to Rs 541.6 crore (Rs 333 crore). Total income for the year has crossed the Rs 5,000 crore mark and rose to Rs 5,017.86 crore, registering a growth of 31.09 per cent.

Net interest income grew to Rs 573.04 crore from Rs 440.82 crore. "We plan to focus on low- cost deposits, agricultural and SME lending," said Dr K.C. Chakrabarty, CMD, Indian Bank.

Total deposits grew 15.4 per cent to Rs 47, 091 crore while gross advances rose 28.4 per cent to Rs 29, 502 crore. The priority sector advances increased 26.2 per cent to Rs 13, 472 crore while agricultural credit increased 37.38 per cent to Rs 5761 crore. The retail advances grew by about 7 per cent and this is a strategic decision by the bank, said a senior official.

"During this fiscal the bank hopes to maintain a deposit growth of 16-17 per cent and credit growth of 20-25 per cent," Mr Chakrabarty said.

Net interest margin improved to 3.75 per cent (3.62 per cent).

"We have not resorted to increasing our PLR in March because we have been able to maintain our spreads. We will take a view after the credit policy," he said.

Indian Bank's PLR is at 12.5 per cent.

The bank's net non-performing assets stood at 0.35 per cent (0.79 per cent).

The Indian Bank CMD, Mr K.C. Chakrabarty, is expected to take over as the CMD of Punjab National Bank from June 1 making way for the Executive Director, Mr M.S. Sundara Rajan, to take charge as the CMD.

The bank has declared a dividend of 20 per cent to its equity shareholders and a special dividend of 10 per cent for the centenary year thus making the total dividend to 30 per cent, said a statement by the bank.

Indian Bank's scrip closed at Rs 95.50 against the previous close of Rs 96.65 on the BSE.

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