Indian Bank Q2 net up 6% at Rs 497 cr

Income rises 12% to Rs 3,774 cr, bank has headroom to raise Rs 7,800 cr tier-II bonds

Indian Bank has reported around six per cent growth in net profit during the second quarter of fiscal 2013 at Rs 496.68 crore, as against Rs 468.69 crore in the same quarter a year ago.

T M Bhasin, chairman and managing director, Indian Bank said that the Bank could have reported 12 per cent growth in net profit had it reversed depreciation account.

Total income rose to Rs 3,773.75 crore during the September 2012 ended quarter from Rs 3,377.13 crore a year ago, while the bank's total business rose to Rs 2,27,116 crore as compared to Rs 2,11,988 crore in March 2012, registering a growth of 14.27 per cent annualised.

CASA deposits improved to Rs 37,994 crore in September 2012 from Rs 36,866 crore in March 2012.

Credit Deposit ratio was at 73.13 per cent.

Net interest margin was at 3.21 per as at second quarter in fiscal 2013 as against 3.30 per cent in fist quarter.

The Bank has said its capital adequacy ratio (CAR) will improve to 14.03 per cent if Bank's half year profit is added. CAR (Basel II) was at 12.96 per cent for ended September 2012.

The Bank has head room available to raise Rs 7,800 crore through tier-II bonds," said Bhasin.

During the current year the Bank got board's approval to raise Rs 1,000 crore tier II bonds.

The Government holds 80 per cent in the Chennai-based public sector bank.

Gross NPA to gross advance ratio of the Bank was at 2.06 per cent as against 2.03 per cent as on March 31,2012.

Net NPA to net advances was at the same level as of March 2012 at 1.33 per cent.

The bank recorded a recovery of Rs 307 crore in first half of fiscal 2013. The bank written off Rs 103 crore which are doubtful, said Bhasin.

He added, the Bank's structural books is around Rs 10,373 crore and the bank made provision of Rs 196 crore. The structured book includes Rs 2300 crore for power sector and Rs 1700 crore for textile.

On the outlook he said, the Bank set a target of around 16-17 per cent in loan book and NIM by 3.25 per cent.