Indian Bank has reported a gross profit of Rs 102 crore for the nine months ended December 31, 2001 against Rs 57 crore, without providing for the amortisation of the voluntary retirement scheme, in the corresponding quarter last fiscal.
Total income during the period increased by 8 per cent to Rs 1,981.5 crore (including non- interest income of Rs 277.94 crore), up from Rs 1,835.52 crore (including non- interest income of Rs 166.77 crore).
While interest income has increased by 9.37 per cent (or Rs 145.98 crore), non-interest income grew by 67 per cent (or Rs 111.17 crore).
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Interest and non-interest expenses during the nine months stood at Rs 1338.74 crore (Rs 1175 crore) and Rs 540.87 crore, respectively.
Indian Bank chairperson and managing director Ranjana Kumar told mediapersons that the bank had achieved various targets set under the restructuring plan submitted to the government and the Reserve Bank of India. "The bank has recovered Rs 159 crore during the nine months ended December 2001. The gross non-performing assets (NPAs) has fallen to 21 per cent (Rs 2,022 crore) in December 2001 from 26.77 per cent (Rs 2,639 crore) in December 2000," she said.
As a pro-active measure, she said the bank had started rehabilitation of 230 accounts involving Rs 860 crore. Of this, 111 accounts involving Rs 551 crore were companies under the Board for Industrial and Financial Reconstruction (BIFR). "We have also put in place an effective system to monitor standard assets to arrest slippage of assets", she added.
On recapitalisation required, Kumar hoped to receive the required recapitalisation from the government during the current fiscal.
However, she was not hopeful of the proposed asset reconstruction company (ARC) as it was likely to get delayed.
With regard to operational margins, Indian Bank has increased its margins to 2.79 per cent in December 2001 from 2.35 per cent in December 2000, an increase of 0.44 per cent. While the cost of deposits declined to 7.76 per cent as on December 2001 from 7.91 per cent as on December 2000, the yield on advances during the same period improved from 10.26 per cent as on December 2000 to 10.57 per cent as on December 2001.
Indian Bank, in a statement, said its core deposits and gross domestic credit for the nine months was Rs 19,565 crore and Rs 10,070 crore. Of the gross domestic credit, the share of food and non-food credit were Rs 1841 crore and Rs 8229 crore, respectively.