Chennai-based Indian Bank is targeting a total business of Rs 1.85 lakh crore in the current fiscal, a top official said here today.
"We are targeting a total business of Rs.1.85 lakh crore in the current fiscal (2010-11), which is about 25 per cent higher than last fiscal's (2009-10). The credit growth would be 24 per cent to Rs 16,000 crore," Indian Bank Chairman and Managing Director T M Bhasin said.
The bank plans to maintain the net interest margin at 3.5 per cent in this fiscal due to upward bias of interest rate.
In last year it was 3.71 per cent.
It plans to bring down the gross non-performing asset from 1.4 per cent now to one per cent by this fiscal end, Bhasin said.
Talking about base rate, Bhasin said it would be revised upwards. At present it is at 8 per cent. "We will take a call on base rate revision on October 1."
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To achieve this credit growth total capital requirement is Rs 2,000 crore, out of which Rs 1,000 crore is already raised and another Rs 1,000 crore is expected to be ploughed back from profit of Rs 250 crore and the rest may be raised as tier II capital during the next quarters.
Earlier the bank thought of merging Ind Bank Housing -- its housing finance subsidiary -- with itself as it was not doing well, he said.
"Now we are looking at a major recovery of Rs 76 crore by March from a single property this will change the fortune of the company," Bhasin said.
He said the bank does not have any plans of merging housing finance business with itself now.
Talking about its international plans, he said the bank would shortly open its second branch in Sri Lanka at Jaffna. It already has a branch in Colombo and Singapore.
"We are planning the Jaffna branch to cater to the Tamil population over there," Bhasin said.
The total size overseas business of the bank is Rs 10,000 crore. It made a profit of Rs 132 crore last fiscal from overseas operations. It is targeting a profit Rs 200 crore in next one year, he said.