Despite economic slowdown, Indian Bank posts 27 percent revenue growthJuly 21st, 2008 - 5:49 pm ICT by IANS
Chennai, July 21 (IANS) Despite the hardening of lending rates and a slowdown in the economy, Indian Bank managed to post a 26.8 percent growth in its revenues and a marginal increase in its net profit in the first quarter of the current fiscal compared to the corresponding period in the previous fiscal, a top Indian Bank official announced Monday. In the first three months of the current fiscal, Indian Bank earned a total income of around Rs.17.44 billion (treasury Rs.4.85 billion, corporate Rs.4.61 billion and retail Rs.6.88 billion) and a net profit of Rs.2.17 billion, M.S. Sundara Rajan, the bank’s chairman and managing director (CMD), told reporters here.
In the comparable period in the previous fiscal, the bank’s total revenue was Rs.13.75 billion while net profit was Rs.2.12 billion, he said. This represented a revenue growth of 26.8 percent and a marginal growth in net profit on a quarter to quarter basis, he said.
After announcing the bank’s first quarter results he said: “Our focus is on ’sleepwell’ accounts, that is, lend prudently and have a portfolio that does not give sleepless nights for us.”
He said the credit trend is buoyant as power, integrated sugar mill and cement players are now borrowing money for business. Non-performing assets on the other hand declined during the period under review.
“During the first quarter of the current fiscal, Indian Bank’s advances grew by 45.68 percent to Rs.444.76 billion and the gross non-performing assets (NPA) declined to Rs.4.20 billion from Rs.5.46 billion in the corresponding period of the previous year,” Sundara Rajan said.
“The benefit of increased lending in the form of higher interest income will kick in only in the successive quarters. The average yield on advances is around 11 percent while the average cost of funds is around 6.24 percent,” he said.
During the period under review, Indian Bank’s deposits went up by 24.90 percent to Rs.622.15 billion (current Rs.47.47 billion, savings Rs.163.08 billion, term Rs.411.60 billion), Sundara Rajan said.
The bank’s board has sanctioned opening of 129 more branches this fiscal, he said.
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