Indian Bank Q4 profit rises 63% to Rs 394 cr

Chennai-based Indian Bank has reported a 63.06 per cent increase in its fourth quarter net profit at Rs 394.07 crore as against Rs 241.67 crore recorded in the year-ago period.

The total income of the public sector bank for the March quarter rose 28.43 per cent to Rs 2,148,48 crore from Rs 1,672.84 crore year-on-year.

Speaking to reporters in Chennai On Monday, Chairman and Managing Director M S Sundara Rajan said the bank’s operating profit rose by 21.56 per cent to Rs 635.72 crore from Rs 522.97 crore. Net interest income stood at Rs 667.6 crore for the fourth quarter as against Rs 522.6 crore.

Profit on sale of investment increased 39.05 per cent to Rs 57.83 crore from Rs 41.59 crore, Sundara Rajan said, adding that the bank will able to grow by 17-18 per cent in the coming year.

He said that the bank had surpassed its target of 17 per cent growth in deposits, which now stood at Rs 72,582 crore compared with Rs 61,046 crore a year ago, an increase of 18 per cent. The growth was mainly driven by low-cost deposits, he added. The bank has ended the financial year 2008-09 with a capital adequacy ratio of 13.27 per cent. Net NPAs increased to 0.18 per cent from 0.24 per cent, while gross NPAs declined to 0.89 per cent from 1.21 per cent.

The board has recommended 30 per cent final dividend, which would take the total dividend on equity capital for FY09 to 50 per cent.

Indian Bank has reported a dip in CASA, which came dropped to 32.53 per cent from 33.27 per cent a year ago.

The bank has opened 101 branches in 2008-09, which increased the total number of domestic branches to 1,162 as on March 31, 2009.