Indian Bank net profit up 13.5%

Indian Bank has reported a 13.5 per cent growth in net profit during the first quarter ended June 30, to Rs 462 crore, compared with Rs 407 crore a year ago.

“Good recovery system and interest income helped the bank to improve the net profit,” said T M Bhasin, CMD, Indian Bank.

Net Interest Income rose 10 per cent to Rs 1,136 crore from Rs 1,030 crore a year ago.

The bank witnessed an improvement in asset quality quarter-on-quarter (QoQ) and no worsening since the fourth quarter of 2011-12. The bank had seen a 55 per cent rise in gross non-performing assets (GNPA) QoQ with GNPA at two per cent plus 70 basis points QoQ.

In the fourth quarter, restructured loan book was one of the highest in the industry at Rs 3,330 crore. Asset quality improved quarter on quarter while GNPA was down 16 per cent to Rs 1,553 crore from Rs 1,851 crore of last year. Net NPA was down 19 per cent to Rs 963 crore from Rs 1,197 crore for the quarter-ended June 30, 2011.

Bank restructures Rs 35 cr for Air India
Indian Bank has restructured loan to the tune of Rs 35 crore to Air India. The loan was restructured during the first quarter of the current financial year.

T M Bhasin, chairman and managing director, Indian Bank, said, “In 2011-12, the bank has restructured Rs 42 crore and in 2012-13, it has to restructure Rs 35 crore in four quarters, but we have done it in one quarter itself.” He added, “They (Air India) are not bad loans and the account is a standard asset.”

The bank has a restructured loan book of Rs 9,918 crore. He said, “One of the major accounts, restructured last financial year, was Rajasthan Electricity Board to the tune of Rs 1,160 crore, for which we also got government guarantee.”