Ind Bank Housing in the black

CORPORATE SCORECARD

Ind Bank Housing (IBHL), a housing subsidiary of Indian Bank, posted net profit of Rs 0.36 crore in the quarter ended March 31 compared with a net loss of Rs 1.98 crore in the corresponding period last year. Income from operations rose 69.04 per cent to Rs 0.71 crore compared with 0.42 crore. For the full year ended March 31, 2007, IBHL's net profit rose by 663.94 per cent to Rs 25.21 crore compared with a net loss of Rs 3.30 crore in FY06. Gross total income of IBHL was Rs 4.65 crore compared with Rs 2.93 crore a year ago, recording a growth of 58.75 per cent.

The profits were due to a lower provision for non performing assets (NPAs) this year as against a provision of Rs 29.62 crore made in the previous year. The lower provision was a result of good recovery from the bad assets. The company took advantage of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2000, (Sarfaesi Act) to bring down the NPAs. IBHL recovered Rs 36.23 crore in housing loans in FY07 compared with Rs 9.95 crore in the previous year, registering a growth of 264.12 per cent.