Indian Bank posts 14% rise in Q2 profit to Rs 283cr

Chennai-based Indian Bank has reported 14.27 per cent increase in net profit during the quarter ended September at Rs 282.93 crore compared to Rs 247.59 crore for the same period last year. The bank's total income increased by 27.31 per cent to Rs 1,900.93 crore from Rs 1,493.13.

Interest income rose by 34.26 per cent to Rs 1,688.15 crore from Rs 1,257.38 crore. M S Sundara Rajan, chairman and managing director, Indian Bank said that this is in the backdrop of strong growth in advance. He added that the cost-income ratio was lower at 40.44 per cent as against 51.42 per cent. The bank's net worth improved to RS 5,398.42 crore from Rs 4,080.94 crore during the quarter.

Capital Adequacy Ratio (CAR) as per Basel II norms stood at 11.27 per cent (including Tier I CAR of 10.10 per cent) as on September 30, 2008 against 13.85 per cent for the same period last year.

Indian Bank's overall business increased by 30.47 per cent to Rs 1,12,706 crore from Rs 86,383 crore. Gross advances increased by 47.36 per cent to Rs 48,092 crore from Rs 32,636 crore. Deposits increased by 20 per cent to Rs 64,614 crore as against Rs 53,747 crore.

Net NPA declined to Rs 85.26 crore and constituted 0.18 per cent of net advances as against 0.27 per cent.