The Hindu Business Line : Indian Bank’s Q2 net up 46 per cent

Chennai, Oct. 15 Indian Bank’s net profit for the July-September quarter stood at Rs 247.90 crore, up 46 per cent from Rs 169.19 crore in the corresponding period of last year. Earnings per share for the quarter stood at Rs 5.54 compared with Rs 4.65, on an expanded capital of Rs 429.77 crore (Rs 343.82 crore). The bank raised about Rs 800 crore through its initial public offering in February.

The proceeds of the public issue as well as the government converting its recapitalisation bonds into bonds that have ‘SLR status’ have together enhanced the capital adequacy ratio of the bank to 13.85 per cent, compared with 12.02 per cent at the end of September last year.

This essentially means that the bank has enough room to give credit without having to look for additional capital.

At a press conference here, Indian Bank’s Chairman and Managing Director, Mr M. S. Sundara Rajan, said that gross non performing assets of the bank stood at Rs 515 crore (1.58 per cent of outstanding loans), compared with Rs 625 crore (2.34 per cent) as of end-September last year.

The point to note here is that the present stock of NPAs involves a few big ticket ones—such as MVR Industries — recovery from whom is said to be round the corner.

When it happens, it would nourish the bottomline, as most of the accounts have already been provided for.

Net NPAs amount to Rs 86 crore (Rs 118 crore, previously), or 0.27 per cent (0.45 per cent) of advances — 83 per cent of the gross NPAs are covered by provisions.

For the first half of the year, net profit was Rs 459 crore, up 37 per cent over the same period last year.

EPS works out to Rs 10.26 (Rs 9.17), on the expanded capital.

Total business of the bank grew by Rs 15,638 crore ( 22.24 %) to Rs 85,954 crore from Rs 70,316 crore.

Total deposits grew by Rs 9,623 crore ( 21.81 %) to Rs.53,747 crore and net credit grew by Rs 6,015 crore ( 22.97 %) to Rs 32,207 crore.