Indian Bank Vizag targets 57% growth in net profit

Indian Bank, Visakhapatnam zone, expects a 57 per cent growth in net profits during this fiscal at Rs 11.80 crore from Rs 7.5 crore earned last year. The zone comprises 46 branches spread over five districts from Srikakulam to West Godavari.

"As of March 2007, the low and no cost deposits formed 36 per cent of our total deposits, and we are aiming to increase it to 40 per cent by March 2008. This will help raise our margins further," NJ Rao, assistant general manager and circle head, Indian Bank - Visakhapatnam, said on the sidelines of the bank's centenary celebrations.

For this, the bank is giving more thrust on securing new account holders. "As of March 2007, the zone had 5.42 lakh accounts, and this year the target is to add 1.14 lakh accounts, which will see our low cost deposits base increase to 40 per cent of our total deposits," he said.

During the current year, the bank plans to open four more branches in the zone and is therefore targeting over 50 per cent growth in deposit mobilisation at Rs 150 crore. New deposits last fiscal stood at Rs 99 crore. In the first quarter of the current fiscal itself, the bank collected Rs 67 crore new deposits.

According to Rao, Indian Bank will sanction Rs 171 crore advances to different sectors during this fiscal of which Rs 84 crore will be to the agricultural sector.

"As 34 out of the 46 branches are located in the rural and semi-urban areas, about 50 per cent of our advance will go to agricultural activities," he said.

The bank reduced its gross net performing asset to 2.44 per cent by the end of last fiscal from 4 per cent as of March 2006. It further aims to trim it to 1.5 per cent by March 2008.