Money & Banking

Indian Bank net up 11% on core biz income growth

Our Bureau Mumbai | Updated on January 24, 2011 Published on January 24, 2011

BL25_BHASIN_INDIAN_BANK

Indian Bank's net profit rose 11 per cent to Rs 491 crore in the quarter ended December, as against Rs 441 crore in the corresponding quarter last year.

Growth in income from core business helped the bank post profits, said Mr T.M. Bhasin, Chairman and Managing Director.

The bank's net interest income grew by 26 per cent in the quarter. However, non-interest income fell 27 per cent mainly on account of lower trading profits and bad debt recoveries. The bank's trading profit fell to Rs 27 crore from Rs 123 crore in the year-ago period.

“We will focus on growing our core fee income by concentrating more on letter on credit and bancassurance tie-ups,” he said.

Mr Bhasin said the bank has been cautious while expanding its retail book in the quarter to control NPAs. The bank's retail book grew by only 7 per cent to Rs 11,365 crore while the corporate portfolio expanded by almost 40 per cent to Rs 39,111 crore.

Fresh slippages in the quarter were around Rs 250 crore with recoveries at Rs 75 crore.

The bank has headroom of Rs 5,072 crore to raise Tier-2 capital. It is also expected to come out with a follow-on public offer in the next fiscal.

The bank is targeting a credit growth of 29 per cent and a deposit growth of 22 per cent by the fiscal end.

Indian Bank's scrip ended at Rs 234.05 on the BSE on Monday, up more than 6 per cent from the previous close of Rs 220.75.

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Published on January 24, 2011
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