Indian Bank Q4 net flat at Rs 241.67 cr

Indian Bank today reported near flat net profit growth during the fourth quarter of 2007-08 at Rs 241.67 crore compared with Rs 235.30 crore during the quarter ended March 31, 2007. During the period, the bank's total income rose under 7 per cent from Rs 1,563.59 crore to Rs 1,672.85 crore.

The Chennai-headquartered bank said the board had recommended a dividend of 30 per cent.

Public sector Indian Bank's net profit increased 32 per cent to Rs 1,008.74 crore in 2007-08 compared to Rs 759.77 crore in 2006-07. The bank's total business crossed Rs 1 lakh crore to touch Rs 1,01,274 crore as on March 31, 2008, from Rs 76,593 crore during the same period last year, a growth of 32.22 per cent. Of the total business, deposits accounted for Rs 61,046 crore, while advances were Rs 40,228 crore.

Total income increased 23 per cent to Rs 6,218 crore from Rs 5,017.86 crore in the same period a year earlier. Other income rose 29 per cent to Rs 1,067.89 crore from Rs 823.06 crore. 
 

Financial parameters quarter ended March
Rs crore	Indian Bank
	2006-07	2007-08
Interest earned	1,219.64	1,359.99
Other income	343.97	312.86
Expenditure	1,022.01	1,149.88
Net profit	235.31	241.67
CAR (%)	14.14	12.86
Net profit margin (%)	19.29	17.77

On the other income front, commission exchange and brokerage increased to Rs 179.30 crore from Rs 148.19 crore. Profit on sale of investments increased 389 per cent to Rs 241.21 crore from Rs 49.31 crore. Dividend received increased to 4.67 per cent from 3.26 per cent. Recovery of bad debt dropped to Rs 312.92 crore from Rs 377.45 crore earlier.

Interest on income rose by 22.79 per cent to Rs 5,150.77 crore in 2007-08, compared to Rs 4,194.80 crore earned in 2006-07. Interest on investments rose to 1,602.83 crore from Rs 1,550.19 crore earlier. Reserves, excluding revaluation reserves, increased 49 per cent to Rs 4,165.78 crore in 2007-08 from Rs 2,791.55 crore in 2006-07.

Net non-performing assets (NPA) was lower at 0.24 per cent (Rs 97.59 crore) as against 0.35 per cent (Rs 102.13 crore) for March 2007, while gross NPA was 1.21 per cent (Rs 486.87 crore) compared with 1.85 per cent (Rs 545.81 crore) for March 2007.

Capital adequacy ratio (CAR) was at 12.86 per cent compared to 14.14 per cent in 2006-07. Tier-I CAR was 11.41 per cent in 2007-08 from 12.28 per cent, while tier-II CAR was at 1.45 per cent compared to 1.86 per cent a year earlier. The bank's disbursement during 2007-08 stood at Rs 3,574 crore. Operating profit was Rs 1,659.30 crore, an increase of 22.13 per cent against Rs 1,358.59 crore in 2006-07.

Net return on assets improved to 1.64 per cent in 2007-08 from 1.46 per cent in 2006-07. Net interest margin stood at 3.34 per cent. Cost income ratio declined sharply to 45.77 per cent from 47.85 per cent for 2006-07.