Indian Bank Q3 net up 7%

Indian Bank has reported a net profit of Rs 526 crore for the quarter ended December 2011, a growth of 7 per cent over the Rs 491 crore recorded in the corresponding year-ago quarter. For the nine-month period, net profit stands at Rs 1,402 crore (Rs 1,275 crore).

Net interest income rose by 12.8 per cent to Rs 1,170 crore during the quarter under consideration from Rs 1,038 crore.

The bank's gross NPA (non-performing assets) was at Rs 1,190 crore (1.35 per cent) and net NPA was Rs 695 crore (0.8 per cent). The bank has recovered a total of Rs 366 crore during the nine-month period.

Recovery camps

“In the last three quarters we conducted over 2,600 recovery camps and recovered Rs 64.50 crore,” said Mr T. M. Bhasin, Chairman and Managing Director of the bank.

The bank's CASA (current account and savings account) deposits improved to Rs 35,536 crore in December 2011, forming 31.3 per cent of total deposits.

Capital adequacy ratio

As per Basel II, the capital-adequacy ratio stood at 11.84 per cent as at the end of the nine-month period.

If the plough back of current year profit is taken for computation, the capital adequacy ratio will go up to 13.48 per cent, said Mr Bhasin.

The bank has secured permission to dilute 10 per cent Government holding and issue 6.14 crore shares.

As of today, the Government's holding is 80 per cent. Besides, the bank is awaiting Government and RBI permission for conversion of Rs 400 crore perpetual non-convertible preference shares into equity (at the current market rate).

rravikumar@thehindu.co.in