Indian Bank posts 13 percent growth in net profit

A good system of recovering loans and increase in interest income enabled public sector Indian Bank to post around 13 percent growth in net profit for the first quarter of current fiscal, said a top bank official here Monday.
"A good recovery system and interest income enabled the bank to increase its net profit," chairman and managing director T.M. Bhasin told reporters here.
For the first quarter of the current fiscal, the bank has reported a net profit of Rs.462 crore up from Rs.407 crore earned during the corresponding period last year.
The bank's net interest income for the period under review stood at Rs.1,136 crore up from Rs.1,030 crore earned during the first quarter of 2011-12.
Indian Bank earned a total income of Rs.3,596.50 crore during the first quarter up from Rs.3,030.74 crore earned during the first quarter of last fiscal.
According to Bhasin, Indian Bank has formed a recovery system to track the performance of loan accounts and the focus will be on management of non performing assets (NPA) and retail banking for the whole year.
He said cash recoveries of Rs.152 crore and upgradation of NPA accounts to the tune of Rs.256 crore brought down the gross NPA to 1.66 percent from 2.03 percent at the end of March 2012. The net NPA has declined to 1.04 percent from 1.33 percent as of March 2012.
For the period under review the bank's total business stood at Rs.220,888 crore (deposits Rs.127,012 crore, advances Rs.93,876 crore) up from Rs.192,934 crore (deposits Rs.110,425 crore, advances Rs.82,510 crore) logged during first quarter of the previous fiscal.