Net Profit grew by 28.65%

CHENNAI: Indian Bank, celebrating its centenary year, has recorded an all round impressive performance during the quarter ended 30.06.2007.

Announcing the performance of the Bank to the press here today after adoption of the Q1 results of the Bank by the Board of Directors, Mr.M S Sundara Rajan, Chairman & Managing Director, Indian Bank said that the Bank has posted a robust growth of 43.67% in operating profit and 28.65% in net profit during the quarter.

·         Net interest income increased by 19.82% and non interest income by 88.54%

·         Total business grew by Rs.13591 crore (20.50%) to Rs.79,879 crore.

Performance highlights

Profit                                                                                     (Rs. in crore)

Ø      Net Profit improved by 28.65% (Rs.47.22 Crore) to Rs.212.03 crore against Rs.164.81 crore for the corresponding period of last year.

Ø      Operating Profit improved by 43.67% (Rs.100.22 Crore) to Rs.329.73 against Rs.229.51 crore

Ø      Net Interest Income improved by 19.82% (Rs.81.13 crore) to Rs.490.49 crore from Rs.409.36 crore. Interest income grew by 25.80% (Rs. 246.67 crore) to Rs.1202.87 crore. Other income grew by 88.54% (Rs.81.65 crore) to Rs.173.87 crore.

Ø      Total Income improved by 31.32% (Rs.328.32 crore) to Rs.1376.74 crore from Rs.1048.42 crore.

Business

                                                                           (Rs. in crore)

Ø      Total business of the Bank grew by Rs.13591 crore (20.50%) to Rs.79,879 crore from Rs.66,288 crore.

Ø      Total deposits grew by Rs.8175 crore (19.63%) and net credit grew by Rs.5416 crore (21.97%) to Rs.30067 crore.

NPA Management

Ø      A recovery of Rs. 97 crore had been made in NPA during the quarter.

Ø      Net NPA fell to 0.28% of Net advances

Ø      Gross NPA fell to 1.79% of Gross advances.

Key Financial ratios

Ø      CRAR improved to 14.47% as against 11.80% as on 30.06.2006 and 14.14% as on 31.03.2007

Ø      Return on Average Assets improved to 1.47% from1.34%

Ø      Net Interest Margin improved to 3.41% from 3.34%

Ø      EPS improved to Rs.4.72 – an annualised earning of Rs. 18.88

Ø      Book value of equity improved to Rs.79.89.

Ø      Cost income ratio improved to 50.37% from 54.24%

Initiatives taken for reaching Common Man

Priority Sector advances

Ø      Priority sector Credit increased to Rs.12507 crore as on 30.06.07, an increase of Rs. 509 crore during the first quarter ended June 07 and constituted 44.41% of Adjusted Net Bank Credit.

Ø      Agriculture credit increased to Rs. 4857 crore as on 30.06.07 and constituted 17.25% of Adjusted Net Bank credit.

Ø      In pursuance of the policy of the Government of India, the Bank disbursed Rs.555 crore as Short Term Agricultural loans at 7% interest during the first quarter of 2007 with interest subvention of 2% provided by GoI.    

Ø      Advances to Weaker Sections constituted 11.05% (Rs.3112.14 crore) of Adjusted Net Bank Credit as against the GoI norm of 10%

Micro Credit

12,396 Self Help Groups were assisted with Rs.121.28 crore during the quarter increasing the outstanding credit to Rs.601.12 crore as on 30.06.2007 from Rs.575 crore as on 31.03.2007. 5938 new SHGs were linked during the quarter

Education Loan

During the quarter 5079 students were assisted with Rs.68.18 crore taking the outstanding under Education loan scheme to Rs.783.29 crore as on 30.06.2007. The Bank sponsored “The Hindu Educational Plus Fair’07” at the University of Madras, Chennai during June 2007.

Financial Inclusion

Ø      Financial Inclusion Project replicated in all the lead districts of the Bank and also in other districts covering in total 807 villages. Kollam, our lead district in Kerala was brought under 100% coverage after Puducherry. Action has already been initiated for completion of the project in all other lead districts.

Ø      3,77,175 persons were brought into Banking fold under Financial Inclusion

Ø      45,831 beneficiaries were provided with General Credit Card/Over Draft facility for Rs.6.24 crore.

Ø      1,55,533 beneficiaries were covered under Janashree Bima Yojana- (Life cover)

Ø      15,436 beneficiaries were covered under Universal Health Care Policy-(Mediclaim  for BPL)

Ø      Pilot Project on introduction of Smart Cards has been taken up in 2 locations viz. Virudachalam (Cuddalore District of Tamilnadu) and Dharavi (Mumbai).  It will soon be introduced in  Kaligram (Kolkata). It is envisaged to issue 1000 Smart Cards in each location.

Ø      In continuation of the efforts of the Bank towards Financial Inclusion, the Bank has launched a new delivery model Ind Online Door Step Banking- a pilot project for setting up of Rural Kiosks to deliver banking facilitates at the Door Step of Common Man at Ariyoor in UT of Pudhucherry.

Ø      The Bank has extended the Dharavi model to Guntur town of Andhra Pradesh and Tharamani in Chennai where the urban poor hitherto not having bank accounts have been brought under banking ambit.

Technology initiatives

Ø      During the quarter, 102 branches were brought under Core Banking Solution (CBS) taking the total number of such branches to 1131 as on 30.06.2007.  Business coverage under CBS increased to 94.59% from 92.71% as on 31.03.2007 and 74.56% as on 30.06.2006.

Ø      During the quarter, 39 ATMs were installed taking the total number of ATMs to 465 as on 30.06.2007 (426 as on 31.03.2007 and 320 as on 30.06.2006).  ATM card base increased to 14.50 lakh from 12.76 lakh as on 31.03.2007.

Ø      Corporate Internet banking solution was implemented and facilitated on pilot basis for select Corporate customers.

Ø      Unembossed (signature based) Mastercard debit card was launched.

Ø      Anti-Money Laundering solution (AML) – (‘Fin DNA’) was implemented in 50 branches and will be extended to all CBS branches.

Ø      Bilingual facility in CBS software was implemented in 2 braches on pilot basis.

Ø      Centralisation of pension activities was undertaken and is under pilot testing.

Ø      Booking of King Fisher Airlines tickets and facility for payment of fees for Vellore Institute of Technology were facilitated through ATMs.

Ø      During the quarter, 25 new branches have been opened and 3 extension counters have been upgraded into full fledged branches, taking the total number of domestic branches to 1469.

Human Resources

All Circle Offices have switched over their major HR activities to SAP- HRMS. Apart from imparting training in various areas of banking and technology at our training centres, select officers were nominated for various training programs in leading Institutes in India and overseas.

Corporate Social Responsibility

The Bank bagged an award for mobilising the highest number of blood donors in Tamil Nadu.  The Bank also won 4 Rolling Shields by the Madras Voluntary Blood Bank for its highest performance in blood donation for the 18^th consecutive year.

The Bank’s Volleyball team has excelled by winning 11 matches in Chennai district  ‘A’ division volleyball league with all top teams from the State of Tamil Nadu.