Indian Bank to convert Rs.400 crore preference shares to equityJanuary 30th, 2012 - 5:44 pm ICT by IANS
Chennai, Jan 30 (IANS) Public sector Indian Bank plans to convert Perpetual Non-Convertible Preference Shares (PNCPS) worth Rs.400 crore into equity at market rate soon even as it has the government’s sanction to dilute 10 percent of its equity, a top bank official said Monday.
“As the 10 percent PNCPS will be converted into equity share capital at the market rate the cost will not be high for the bank. We also have the government permission to dilute 10 percent government holding through the issue of 6.14 crore shares amounting to Rs.61.40 crore in hand,” T.M. Bhasin, chairman and managing director of the city-based bank, told reporters here.
The bank’s current equity capital is Rs.429.77 crore.
Bhasin said the bank closed its third quarter with a net profit of Rs.526 crore as against Rs.491 crore posted during the corresponding period of the previous fiscal.
“This is the first time in the bank’s history that the quarterly net profit has crossed the Rs.500 crore figure.”
Bhasin said the bank’s net interest income for the quarter went up by 33 percent to Rs.3,505 crore from Rs.2,641 crore earned during the like quarter of the 2010-11 financial year.
According to him, for the period under review Indian Bank’s total global business went up to Rs.207,014 crore (deposits Rs.118,970 crore, advances Rs.88,044 crore) from the previous year’s figure of Rs.174,035 crore (deposits Rs.101,015 crore, advances Rs.73,919 crore).
Indian Bank’s cost of deposit stood at 6.86 percent, yield on advances 11.66 percent and yield on investments 7.63 percent.
About the bank’s non performing assets (NPA), Bhasin said the gross NPA to gross advances ratio was at 1.35 percent, while the net NPA to net advances was at 0.80 percent.
During the first nine months of the current fiscal, the bank has added fresh NPA of Rs.839 crore and for the third quarter the loan account slippage is Rs.293 crore.
He said the NPA recovery target for the current fiscal is Rs.500 crore and till date the bank had recovered Rs.366 crore.
- Huge jump in Indian Bank's NPA - May 11, 2012
- Indian Bank posts 13 percent growth in net profit - Jul 23, 2012
- Vijaya Bank net zooms 235 percent in Q4 - Apr 30, 2012
- Indian Bank to raise $500 mn for overseas operations - Jul 29, 2011
- City Union Bank to come out with rights issue - Jan 31, 2012
- IOB targets 20 percent business growth in 2012-13 - May 05, 2012
- United Bank's net up by 13.7 percent in Q2 - Oct 31, 2011
- City Union Bank to raise Rs.250 crore through rights issue - Aug 03, 2012
- Indian Bank to open more branches in and outside India - Jul 24, 2010
- United Bank Q1 net up by 31 percent - Aug 03, 2012
- Allahabad Bank's Q4 net profit up by 14.74 percent - May 02, 2011
- Allahabad Bank reports 55 percent rise in Q4 net profit - May 05, 2012
- UCO Bank's net up 22.35 percent in Q3 - Jan 28, 2011
- United Bank of India's Q3 net up by 38.5 percent - Jan 31, 2012
- Syndicate Bank quarterly net up 72 percent - May 12, 2011
Tags: convertible preference shares, curren, equity capital, equity share capital, first nine months, global business, government permission, gross advances, interest income, loan account, net interest, net profit, non performing assets, npa recovery, percent yield, rs 2, rs 500, slippage, target, worth rs