Chennai-based, state-run Indian Bank has reported a 14.27 per cent increase in net profit during the second quarter ended September 2008 at Rs 282.93 crore compared with Rs 247.59 crore for the same period last year. The bank’s total income increased by 27.31 per cent to Rs 1,900.93 crore from Rs 1,493.13.
The interest income rose by 34.26 per cent to Rs 1,688.15 crore from Rs 1,257.38 crore. M S Sundara Rajan, chairman and managing director, Indian Bank, said the rise in net profit was in the backdrop of strong growth in advances. He added that the cost-income ratio was lower at 40.44 per cent as against 51.42 per cent. The bank’s networth improved to Rs 5,398.42 crore from Rs 4,080.94 crore during the period under review.
According to the Basel-II norms, the Capital Adequacy Ratio (CAR) was 11.27 per cent (including tier-I CAR of 10.10 per cent) as on September 30, 2008, against 13.85 per cent for the same period last year.
The bank’s overall business increased by 30.47 per cent to Rs 1,12,706 crore from Rs 86,383 crore. Gross advances increased by 47.36 per cent to Rs 48,092 crore from Rs 32,636 crore. Deposits shot up by 20 per cent to Rs 64,614 crore as against Rs 53,747 crore.
Net NPAs declined to Rs 85.26 crore and constituted 0.18 per cent of the bank’s net advances as against 0.27 per cent in the corresponding quarter last year.
