Date:13/05/2005 URL: http://www.thehindu.com/2005/05/13/stories/2005051304151700.htm

Business

Indian Bank net profit at Rs. 408 crs.

Corporate Reporter

Aims to consolidate further; to focus on retail credit

CHENNAI: Indian Bank has reported another year of good performance during April 2004-March 2005.

Addressing presspersons after releasing the audited results, here on Thursday, M. B. N. Rao, Chairman and Managing Director, said the bank could record growth in all parameters comparable to good banks in the industry.

The operating profit rose by 19.4 per cent to Rs. 958.07 crores from Rs. 802.46 crores in the previous year. Of this profit from investments accounted for Rs. 210 crores against Rs. 464.94 crores. If these were excluded, the operating profit would be higher by 122 per cent, Mr. Rao said. Because of provisions, which included depreciation on investments of Rs. 136.48 crores (due to transfer of securities from `available for sale' category to the `held to maturity' category) and Rs. 137.40 crores towards the impending wage arrears, the net profit was only marginally higher at Rs. 408.49 crores against Rs. 405.75 crores.

Total deposits grew by 14.3 per cent to Rs. 34,808 crores. Net advances rose by 30.11 per cent to Rs. 18,380 crores. Agriculture credit disbursement stood at Rs. 2,641.92 crores against Rs. 1,379 crores.

Gross business of the bank rose by 18.3 per cent to Rs. 53,689 crores. The bank could achieve a sizable reduction in non-performing assets with the net NPA at 1.35 per cent against 2.71 percent thanks to a vigorous recovery drive.

On the expected initial public offer of shares by the bank, Mr. Rao said the bank would come out with the offer before September this year and in view of the bank's good performance, the shares would command a sizable premium.

For the current year, the bank was aiming at further consolidation through rapid growth in business and profit, focus on retail credit portfolio and extension of core banking solutions, the CMD said.