Indian Bank’s Net Profit Up By 25.86% at Rs 441 crores in Q3 ended December 2009


Chennai, January 23, 2010:

Highlighting the performance of the Bank to the Press here today, after the adoption of the Third Quarter results by the Board, Shri M S Sundara Rajan, Chairman & Managing Director said that the Bank has excelled in all areas - in the total business, net worth, operating profit, net profit, EPS and other key ratios.

Performance Highlights for the quarter ended December 2009

• The Bank posted Net Profit of Rs. 441.38 crore for the quarter ended December 2009 as compared to Rs.350.70 crore for the corresponding period of previous year, recording a growth of 25.86%.

• The Bank recorded an Operating Profit of Rs.690.67 crore compared to Rs. 578.68 crore for the corresponding period of previous year, registering a growth of 19.35 %.

• Net Interest Income improved by 21.31% (Rs.153.37 crore) to Rs.872.97 crore from Rs.719.60 crore.

• Total Income improved by 11.44% (Rs.236.92 crore) to Rs.2308.29 crore from Rs. 2071.37 crore.

Rating

ICRA has upgraded the rating assigned to the Rs.300 crore lower Tier II bonds programme of Indian Bank from LAA to LAA+ with a positive outlook. The rating indicates high quality and the rated instrument carries low credit risk.

Key Financial ratios

• NIM was at 3.82% compared to 3.91%.

• Return on Average Assets was at 1.86% as against 1.83% for the corresponding period of last year.

• Cost to Income ratio improved to 40.79% from 42.53%.

• Book value of equity improved to Rs.154.16 (Rs. 125.57 for December 08).

• Net Worth improved to Rs.7025.32 crore from Rs. 5796.52 crore.

• Earnings per Share (annualised) improved to Rs.39.99 from Rs. 31.69.



Capital Adequacy

The Capital to Risk weighted Assets Ratio (CRAR) is well above the prudential norm of 9%.

• CRAR as per Basel I norms improved to 13.15% as on 31.12.2009 against 12.68 % as on 31.12.2008.

• CRAR as per Basel II norms improved to 13.75% as on 31.12.2009 against 13.09% as on 31.12.2008.

Business:

• Total Business of the Bank measured in terms of total deposits and gross advances increased to Rs.1,42,200 crore, up from Rs.1,20,120 crore recording a growth of Rs.22,080 crore (18.38%). Total Deposits rose by 21.64% (Rs.15,072 crore) to Rs.84,732 crore from Rs.69,660 crore. Gross Advances increased by 13.89% (Rs.7008 crore) to Rs.57,468 crore from Rs.50,460 crore.

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(This is a press release from Indian Bank)