Indian Bank Q2 net up 31% to Rs 372 cr

Public sector lender Indian Bank posted a 31 per cent growth in net profit to Rs 371.98 crore for the quarter ended September 30, 2009 as compared to Rs 282.92 crore in the year-ago period on the back of lower provisioning for bad loans.

On the other hand, net interest income grew by just 11 per cent to Rs 759 crore in the September quarter from Rs 682 crore in the corresponding quarter last year. Total Income grew 14 per cent from Rs 1900.93 crore for the quarter ended September 30, 2008 to Rs 2174.37 crore for the quarter ended September 30, 2009.

Provisions for bad loans more than halved to 29.27 crore from Rs 63.93 crore at the end of the September 2008 quarter. Gross non-performing assets in absolute terms increased marginally to Rs 480 crore from Rs 470 crore at the end of the year ago quarter. However, gross NPAs as a proportion of gross advances reduced to 0.89 per cent from 0.98 per cent a year ago.

Over the same period, other income grew 12 per cent to Rs 237 crore from Rs 212 crore in the September 2008 quarter.