Indian Bank net growth up 2.4%

Indian Bank has posted a 2.46 per cent growth in net profit at Rs 314 crore for the quarter ended September 30, 2014, compared with Rs 307 crore in the year-ago period. Total income during the quarter under review saw a growth of 6.43 per cent to Rs 4,340 crore, against Rs 4,078 crore in the July-September 2013 quarter.

Gross non-performing assets (NPAs) of the bank rose to 4.21 per cent at Rs 6,003 crore during the quarter, compared to 3.76 per cent at Rs 4,179 crore in the year-ago quarter. Net NPA, however, stood at 2.55 per cent compared to 2.58 per cent.

The increase in profit was due to the rise in operating profit, Rs 66 crore recovery from technical return of accounts and earning of Rs 50 crore from foreign exchange.

“NPA is a concern for the bank, (we are) working round the clock on it,” said T M Bhasin, chairman and managing director, Indian Bank.

“We are going for asset-based mobilisation, contain the cost of deposit and increase the yield on advances,” he added.

The bank is looking at an overall growth of 12-13 per cent for the current financial year. The NPA target is 4-4.25 per cent and net NPA target is 2.5 per cent.

By the end of the year, the bank expects to have 2,500 branches, up from the current 2,380.