The Hindu Business Line : Recoveries buoy Indian Bank’s Q1 net profit

Chennai, July 22 Indian Bank has reported a net profit of Rs 212 crore for the April-June quarter, 28.65 per cent higher than Rs 164.81 crore achieved in the corresponding quarter of last year.

In this, the bank was aided by higher recoveries from delinquent loans. The bank recovered Rs 97 crore, against Rs 74 crore in Q1 last year. Net NPA fell to 0.28 per cent of net advances. The quarter also saw deposits rise by close to 20 per cent (Rs 8,175 crore) and advances by 22 per cent (Rs 5,416 crore). Net interest margin improved to 3.41 per cent from 3.34 per cent in Q1 last year.

Addressing a press conference here on Saturday, the Indian Bank Chairman and Managing Director, Mr M.S. Sundararajan, said that the bank disbursed Rs 68 crore of education loans during the quarter. As on June 30, the bank’s education loan book stood at Rs 783 crore, which makes it one of the largest lenders for education in the country.

Mr Sundararajan said that the FII holding in the bank had increased to 13.93 per cent at the end of the quarter, from 6.83 per cent on February 23, the day the allotments were finalised after the bank’s initial public offering. Incidentally, the Government of Singapore, together with its central bank, the Monetary Authority of Singapore, is the biggest shareholder in Indian Bank after the Government of India. The Government of Singapore holds 2.55 per cent and MAS holds another 4 per cent.

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Recoveries buoy Indian Bank’s Q1 net profit