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

Performance Highlights for the nine months ended December 2009

• The Bank recorded an Operating Profit of Rs.1875.02 crore for the nine months ended December 2009 as compared to Rs.1503.11 crore in the same period the previous year, registering a growth of 24.74%.

• Net Profit improved by Rs.293.78 crore (34.51%) to Rs.1145.03 crore for the nine months ended December 2009 as compared to Rs. 851.25 crore in the same period in the previous year.

• Net Interest Income improved by 22.09% (Rs.428.82 crore) to Rs.2369.77 crore from Rs.1940.95 crore.

• Total Income improved by 17.42% (Rs.995.76 crore) to Rs.6713.05 crore from Rs.5717.29 crore.

Key Financial Ratios

• NIM was at 3.62% compared to 3.63% in the nine months ended December 2008.

• Return on Average Assets was at 1.68% compared to 1.53%.

• Cost to Income ratio improved to 42.32% as against 44.00%.

• 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.

• EPS (annualized) improved to Rs.34.43 from Rs. 25.46.

Asset Quality/ NPA Management

• Improving asset quality is one of the focus areas of the Bank. Gross NPAs declined to 0.89% (Rs.514.27 crore) as on 31.12.2009, from 0.92% (Rs.462.46 crore) as on 31.12.2008. As on 31.12.2009, the Bank’s Net NPAs was maintained at 0.16%. During the nine months, total NPA recovery was Rs.471.07 crore.

• By continuous monitoring of Standard Assets, slippage to NPA category was contained at Rs.198.41 crore during the nine months and delinquency rate was at 0.39% of Standard Advances.

Priority Sector Lending

• Priority Sector advances of the Bank increased by Rs.2597 crore (14.09%) during the nine months to reach Rs.21023 crore as on 31st December 2009 and recorded a y-o-y growth rate of 18.79%. It constituted 43.07% of Adjusted Net Bank Credit as against the norm of 40% to be reached by March 2010.

Agriculture credit

Credit to Agriculture increased by Rs.979 crore (12.49%) during the nine months ended December 2009 to reach Rs. 8817 crore and registered y-o-y growth of 20.35%.

Rural Development

Financial Inclusion: Covering 4637 villages under the Financial Inclusion Project, the Bank opened 21.76 lakh ‘No Frills’ SB accounts and provided Overdraft and GCC facilities to individuals with a total sum of Rs.11.59 crore.

Microfinance: The pioneering work in the realm of Micro Finance and Self Help Group (SHG) movement is continued by the Bank throughout the country. The Bank disbursed Rs.1024.16 crore as credit assistance to SHGs during the nine months ended December 2009.

Education Loans: The Bank is keen on helping meritorious yet needy students. The exposure of the Bank to education loan portfolio crossed the Rs.2000 crore mark and stood at Rs.2202.09 crore as on 31st December 2009 benefitting 154,377 students. During the nine months ended December 2009, the Bank disbursed a sum of Rs. 495.04 crore as Education loans to 78,412 students.

Advances to MSME

During the nine months, Advances to MSME sector grew by Rs.2228 crore (40.72%) to Rs.7699 crore.

• Continuous efforts by way of tie up with MSME DI, BYST, MICO BOSCH after careful analysis of individual cases so as to reach the Micro Enterprises target (60% of SE).

• For quick and quality appraisal of SME proposals, Central Processing Units have been set up in 9 key centres at Ahmedabad, Bangalore, Chennai, Coimbatore, Kancheepuram, Kolkata, Mumbai, New Delhi and Pune.

• 62 Specialised SME Branches function for giving focussed attention and growth of SME portfolio.

• To augment SME exposure, development studies as well as cluster approach are being utilised.

• Indirect finance to SMEs by financing Industrial Parks and other Infrastructural set-up linked to SME clusters.

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(This is a press release from Indian Bank)