Indian Bank Q2 Net rises 2.8% to Rs 314.33 cr

Public sector Indian Bank today reported a marginal 2.8 per cent rise in net profit at Rs 314.33 crore for the second quarter ending September 30, 2014.
The city-based bank had registered net profit of Rs 305.76 crore during the corresponding quarter of the previous year, Indian Bank Chairman and Managing Director T M Bhasin said.
"Our operating profit has gone up by Rs 140 crore (for the second quarter ending September 30, 2014) as compared to the previous quarter. The main contribution for us is from technically written off accounts which is about Rs 66 crore and about Rs 50 crore profit is based on forex provisions," Bhasin told reporters here.

Total income for the second quarter grew to Rs 4,340.32 crore from Rs 4,078.24 crore in the same period of the previous year.
On the outlook for the second half of current fiscal, Bhasin said the bank was looking at registering 13 per cent growth on deposits and advances.
"We are also looking at bringing down Gross NPA to four per cent while Net NPA by 2.5 per cent this financial year", he said.

As on September 30, 2014 the Gross NPA stood at 4.21 per cent, while Net NPA at 2.55 per cent, Bhasin said.
To a query on education loan portfolio, he said the bank has disbursed about Rs 500 crore as of September 30, 2014 while it was Rs 425 crore in the same period last year.

Asked about the RBI guideline directing banks to allow only five free transactions for a customer, he said, "we are maintaining status quo on the guidelines. We are encouraging them to come to our own bank ATM for accessing their accounts. We are also planning to have ATMs in all our branches".