Indian Bank has reported a 11.45 per cent growth in net profit during the second quarter ended September 30 at Rs 451.54 crore as compared to Rs 405.15 crore, a year ago. Kishor Kharat, MD & CEO of the bank said that total business growth - especially retail, agriculture and MSME (RAM) growth of 20 per cent, drop in cost-income ratio to 39 per cent from 47 per cent due to the control of expenditure - have helped hike the bank's profit. Besides the bank's fee-based income that grew by 50 per cent, also helped the profit. Earlier, he added that the bank had said that it will close the year with a net interest margin (NIM) of three per cent. However, it achieved 2.92 per cent in the first half itself. The bank's provisions have gone up to Rs 924.06 crore from Rs 601.10 crore, a year ago. Kharat said the increase was not due to slippages, but due to NCLT accounts for which provisions are required. Gross NPAs were at 7.28 per cent last year and it was brought down to 6.61 per cent. The bank set a target to bring down the gross NPAs to less than six per cent. Net NPAs dropped to 3.41 per cent during the second quarter from 4.62 per cent. The bank's target is to bring it down to less than 3 per cent. Bank's total balance sheet rose by 11.89 per cent to Rs 2,29,958 crore from Rs 2,05,522 crore. Kharat said deposits grew by 11.51 per cent to Rs 1,98,669 crore.
Low cost grew by 24 per cent, current account deposits grew by 43.53 per cent and savings bank grew by 21 per cent.Advances grew by 14.21 per cent, led by retail, Agriculture and MSME (RAM). Retail grew by 23.25 per cent, agriculture by 12.64 per cent and MSME grew by 21.98 per cent. Corporate loan book grew by 7.69 per cent.