Indian Bank net up 32%

Indian Bank posted a 31.48 per cent growth in net profit to Rs 371.99 crore for the quarter ended September 30, 2009, as compared with Rs 282.92 crore in corresponding period last year. Total income was up 14.4 per cent to Rs 2,174.38 crore as against Rs 1,900.93 crore during the period. Net interest income grew 11 per cent to Rs 759 crore from Rs 682 crore and non-interest income too was up 11.48 per cent to Rs 237.21 crore as against Rs 212.78 crore.

Bank chairman and managing director MS Sundara Rajan said, “Non-interest income has the potential to grow.” Bad loans provisioning decreased to Rs 29.27 crore from Rs 63.93 crore at the end of the September 2008 quarter. Treasury income has also increased to Rs 29.94 crore as against Rs 3 crore in the year ago period.

The bank's non-interest margin decreased to 3.45 per cent from 3.86 per cent. “Prime lending rate reduction of more than two per cent has resulted in the reduction of non-interest margin. But looking ahead, we can maintain it at 3.51 per cent,” Sundara Rajan said.