Indian Bank's efforts to keep down high cost deposits

By Our Staff Reporter

CHENNAI, SEPT. 13. Indian Bank has registered a profit of about Rs.35 crores in the first quarter of this fiscal, after providing funds for VRS, Ms.Ranjana Kumar, chairperson, said here today.

Speaking to presspersons, she said the bank's aggregate deposits had gone up by Rs. 840 crores to Rs.21,256 crores as on August 31. ``We have achieved consistent growth this year,'' she said. Advances had also gone up by Rs. 260 crores during the same period.

The management was concerned over the cost of deposit and the average cost, which had fallen by 0.53 per cent in 2000-01, had further dropped by 0.5 per cent this year. The emphasis was to keep high cost deposits down to 10 per cent of total deposits. Recovery on NPAs was Rs. 92 crores this year and it was expected to touch Rs.125 crores by September. This includes one-time settlements also.

The merger of 83 branches had resulted in savings of about Rs. 11 crores by way of establishments and other cost.

Ms. Kumar said the bank haf opened a new line of credit for class one officers of the IPS and IAS cadre in Andhra Pradesh, Kerala, Delhi and Tamil Nadu with a prime lending rate of 13.5 per cent.

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Section  : Business
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