Indian Bank targets 40% growth in business by 2012

Indian Bank has targeted to achieve total business of Rs 2, 10,000 crore by the end of 2011-12, up from Rs 1, 51,000 crore in 2009-10 which translates into 40 per cent growth. The public sector bank also plans to ramp up its pan-India branch network by opening around 200 branches in 2010-11. Presently, it has 1756 branches.

V Ramagopal, ED, Indian Bank, said, the bank's network of Microsate branches which are meant for exclusive financing of the Self-help Groups (SHGs) is also set to go up from the existing 60 to 100 by the end of this fiscal. More than four lakh SHGs have been financed by the bank till date. The bank's capital adequacy ratio stood at 13.75 per cent while its gross NPA (Non-Performing Asset) was 0.89 per cent (as on December 31, 2010) with its net NPA being 0.16 per cent. The bank hopes to bring its net NPA down to zero by the end of 2011-12.

Indian Bank is currently selling mutual funds and insurance products and intends to foray into insurance business through a joint venture with an insurance player, which may be either a domestic or overseas insurance firm and a public sector bank. “Our board has cleared the proposal of entering into insurance business but the modalities haven't been worked out yet”, said Ramagopal. On the bank’s response to the 0.25 per cent increase in repo and reverse rates by RBI, he said, “The rise in repo and reverse repo rates by 25 basis points is not going to have any significant impact on the liquidity system and the banks are unlikely to jack up lending rates. The rise in interest rates will depend on the credit demand which is expected to pick up in the second quarter of this fiscal.”