Indian Bank net up 25% at Rs 1544 cr in FY10

CHENNAI: Indian Bank has reported a 24.87% rise in net profit at Rs 1544.99 crore in the year ending March 31, 2010 against Rs 1245.32 crore in the previous year. Operating profit was up by 33.64% at Rs 2747.35 crore ( Rs 2055 crore). On the equity capital of Rs 829.77 crore, the board declared a final dividend of 40% in addition to 25% interim paid earlier.

Net worth improved to Rs 7047.02 crore (Rs 5880.30 crore). Earning per share improved to Rs 35.09 (Rs 27.96). Last year, total business crossed Rs 1,50,000 crore with total deposits increasing by 21.56% to Rs 88,228 crore and gross advances by 20.89% to Rs 62,658 crore. The share of CASA deposits stood at 32.9% (32.5).

The bank had reduced gross NPA to 0.81% (Rs 510.11 crore) against 0.89% in 2008-09 and net NPA stood at 0.23% (Rs 144.93 crore). Bank chairman and MD, TM Bhasin said on Saturday by 2012, it is targeting to achieve zero net NPA and gross NPA of 0.5%.

As on March 31 this year, it had an optimal capital adequacy (Basel II) of 12.71% with tier I capital of 11.13%. This gives scopes for raising fresh funds, he said. It is also hopeful of maintaining last year’s net interest margin of 3.71%.

He said last year it expanded its pan India presence by opening 114 new branches and increased the network to 1756 branches. It also added 250 ATMs taking the total to 1005. It plans to open 400 branches in two years of which 194 will be opened this year.
Mr Bhasin said the bank retained its thrust on HR initiatives through promotions and by recruiting 700 staff and 300 officers. At the next board meet, it will decide on the recruitment for this year after reviewing the retirements.

It is targeting a total business of Rs 1,85,000 crore this year and Rs 2,25,000 crore by March end 2012. It also plans to expand the customer base to 27.5 million by 2012 from the existing 21.6 million. Apart from expanding presence in Sri Lanka, it will open a branch in Maldives.

To serve better the younger generation, the bank plans to open five e branches (fully automated) in the country. They will come up in metros and IITs and IIMs. The first branch will be launched at Royapettah in Chennai on August 15 followed by the rest in three months.