The Hindu Business Line : Indian Bank net up at Rs 116 cr in first half

BUOYED by a growth in recoveries, Indian Bank has posted a higher net profit of Rs 116.91 crore for the first half of the current year compared to Rs 72.65 crore in the same period last year.

Recoveries were up at Rs 132 crore against Rs 100 crore. Indeed, the bank recovered a sum of Rs 30 crore in October.

The Chairperson and Managing Director, Ms Ranjana Kumar, told presspersons here on Monday that the operating profit increased to Rs 256.21 crore from Rs 191.65 crore.

The bank is also confident of making a net profit for the full year. Then, it would have turned in a net profit for three consecutive years after which it would become eligible to come out with a public issue.

Asked about this, Ms Kumar said that the bank would prefer to go to the market either in the fourth quarter of the next financial year, or in the first quarter of the year after.

At present, Indian Bank is busy making recoveries. Soon, about 130 grounds (about 3.12 lakh sq. ft) of land in Guindy, offered to MVR Industries as security against a loan, would come up for auction. MVR, one of the big-ticket overdue accounts, owes the bank about Rs 100 crore.

Any inflow of funds would add to the net profit, because the bank has already provided for (treated as expense) most of these overdue accounts in the past years. At present, the bank's provision cover — provisions as a percentage of non-performing loans — stands at 52.22 per cent.

Its gross NPAs stand reduced at 11.64 per cent of loans from 12.39 per cent at the end of March, and 17.15 per cent at the end of September 2002. Net NPAs (gross NPAs minus provisions) stood at 4.79 per cent, down from 6.15 per cent at end-March and 7.84 per cent at end-September 2002.

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Indian Bank net up at Rs 116 cr in first half