Indian Bank’s income spikes by 18% in Q2

Chennai: Indian Bank increased its operating profit by 26 per cent touching Rs 1502 crore from Rs 1191 crore for the corresponding period last year, and its net profit increased by 139 per cent to Rs 359 crore during the second quarter of the current financial year ended 30 September.

Managing director and CEO, Indian Bank, Padmaja Chandru, speaking at a meeting held here in Chennai, yesterday said, “Our robust performance is attributed to focus on business growth and earnings, strict adherence to prudent lending norms coupled with our financial strength, including sustained efforts to keep NPAs under control.”

She added, “As of now, our focus has been to build a balance sheet resilience and make sure that Indian Bank continues to enjoy a pre-eminent position it has in terms of the trust and in terms of the values it gives to its investors and customers. This has been paying off.”

A statement issued by the bank said, during the quarter, total income grew 18 per cent to Rs 6,045 crores from Rs 5129 crore and net interest income rose by 8 per cent to Rs 1,863 crore. Net revenue grew 20 per cent to Rs 2,601 crore. Other income (non-interest revenue) rose 72 per cent to 738 crores, mainly on account of 249 crore profit on the sale of investments. Gross non-performing assets (NPA) increased by four basis points to 7.20 per cent while net NPAs declined from 4.23 per cent to 3.54 per cent.

The net interest margin (domestic) declined by nine basis points and touched 2.92 per cent and the bank aims to end the year at 3 per cent. “Three per cent in this market is very good and to achieve that, we continue to build on the earnings, the interest income. and also other income,” said Padmaja. “We are also going into non-fund based business, with lots of prudential guidelines in place. So there are a lot of opportunities and potential is there and with right focus, three per cent should be achievable.”

On the merger of Allahabad Bank with Indian Bank she said, “The recent amalgamation of Allahabad Bank with Indian Bank will give further momentum to our global vision and we hope the total business to propel faster. The merged entity will boost robust growth and emerge amongst the leading banks in the banking industry.”

NT Bureau