Indian Bank net up 11%
Public-sector lender Indian Bank has reported a growth of 11 per cent at Rs 368.15 crore in net profit for the first quarter, ended June 30, as compared to Rs 331.66 crore during the corresponding quarter of the last fiscal.
The Chennai-based bank reported an 11.07 per cent increase in its total income for the first quarter at Rs 2,477.25 crore, as against Rs 2,230.39 crore.
Indian Bank's revenue from the corporate banking segment went up by 19.67 per cent to Rs 1,041.37 crore during the quarter ended June 30, from Rs 870.20 crore in the year-ago period.
T M Bhasin, chairman and managing director, Indian Bank, said the bank's CASA improved to Rs 29,750 crore in June 2010 from Rs 22,957 crore, during the same period last year. CASA share improved to 33.34 per cent in the first quarter of 2010-11 from 30.39 per cent, a year ago.
The bank’s net interest margin (NIM) growth to remain healthy at 24 per cent, he added
Commenting on bank’s expansion plans, Bhasin said, the bank currently had 1,762 branches and was planning to open another 187 this year.
The bank also plans to recruit 1,000 people and to give promotion to another 1,000 to fill the 600 posts that are expected to fall vacant as people retire.
As part of overseas expansion, the bank has applied for licence to open branches in Japan, which is expected in a month, Jaffna in Sri Lanka and in Jakarta, Indonesia.
“The government is planning to pay Rs 1,000 crore to the Sri Lankan Tamils through Indian Bank,” Bhasin said. Colombo branch alone reported a business of Rs 800 crore, of which around Rs 500 crore was advances.