Board of Indian Bank gives nod to raise Rs 2,500 cr

Public sector Indian Bank today reported a 34.7 per cent decline in its net profits to Rs 207.15 crore for the first quarter ending June 30, 2014.
The city-based bank had reported net profits at Rs 317.39 crore during the corresponding period of previous year.
"There was an exceptional profit on account of trading in securities which resulted in a profit of Rs 314 crore during the first quarter of previous year, as compared to Rs 36 crore registered (in securities trading) during the first quarter of current financial year. It is a difference of Rs 278 crore," Indian Bank CMD T M Bhasin told reporters here.

Total income of the bank during the quarter almost remained flat at Rs 4,144.01 crore as against Rs 4,195.47 crore during the same period of previous year.
For the year ending March 31, 2014, the total income of the bank stood at Rs 16,620.88 Crore while the net profit stood at Rs 1,158.94 Crore, he said.
Asked whether the bank was proposing to raise funds, he said, "We have taken approval from the Board to raise Rs 2,500 crore through infrastructure bonds. Initially it will happen in tranches".

Noting that the bank continue to be very comfortable with CRR (Cash Reserve Ratio), Bhasin said, the net profits from core operations was higher by Rs 168 crore setting aside the treasury profit.

He said the Bank has shed high cost deposits to the tune of Rs 7,000 crore during the quarter ending June 30, 2014.
Total business of the bank grew to Rs 2,72,989 crore as compared to Rs 2,58,795 crore during corresponding period of previous year.
Total deposits grew to Rs 1,55,336 crore as on June 30, 2014 from Rs 1,49,582 crore registered during the same period of previous year, while total advances stood at Rs 1,17,653 crore as against Rs 1,09,213 crore.
Gross NPA of the bank as on June 30, 2014 was 3.41 per cent compared to 4.01 per cent while net NPA of the bank as on June 30, 2014 declined to 2.31 per cent from 2.48 per cent.

He said during the quarter ending June 30, 2014 the bank has opened 23 branches, including three branches in overseas market taking the total number of branches to 2,273.