Chennai-based public sector bank Indian Bank has reported a 4.03 per cent increase in its net profit at Rs 409.9 crore for fourth quarter-ended March 31, 2010, over the corresponding period last year. The total income of the bank rose to Rs 2,317.7 crore for the quarter-ended March 31, from Rs 2,148.4 crore during the same period of the previous fiscal.
Speaking on the bank’s annual results for 2009-10, he said the topline and the bottomline grew 14.81 per cent and 24.87 per cent respectively. The bank reported a total income of Rs 9,030.32 crore and a net profit of Rs 1,554.99 crore last year as against Rs 7,865.77 crore and Rs.1,245.32 crore respectively. Meanwhile the bank is planning to open five fully automated branches called ‘E-Indian Branch’ this fiscal which will target the youth.
“The first branch will open at our new corporate office which will be inaugurated this August 15. The other branches will come in Mumbai, Delhi, Hyderabad and Bangalore,” T M Bhasin, chairman and managing director, said.
Declaring the bank’s results for the year 2009-10 he said that the E-branches will have multiple automatic teller machines for people to transact banking business. Planned as branches without human interaction, Bhasin said, initially the E-branches will have few people to guide the customers in using the machines. The bank will open around 190 branches across the country this fiscal thereby taking the total to over 1,940.
Commenting on Reserve Bank of India increased the cash reserve ratio (CRR), repo and reverse repo rates he said: “Around Rs 215 crore has been sucked out of the system towards reserves.”
Last year the bank’s gross and net NPA went up to Rs 510 crore and Rs 145 crore respectively as against Rs 459 crore and Rs 94 crore booked during 2008-09. The bank has booked Rs.587 crore as NPA recoveries for FY10 as against Rs 457 crore earned the previous fiscal.
The NPA provision coverage ratio is around 94 per cent as against the stipulated 70 per cent. Bhasin said the bank is working towards zero net non performing assets (NPA) and 0.50 per cent gross NPA by March 2012.