Indian Bank Q2 net profit up 6 per cent at Rs 496.8 cr

Indian Bank closed the second quarter of the current financial year with 6 per cent growth in its net profit at Rs 496.68 crore. The public sector bank has reported a net profit of Rs 468.69 crore in the corresponding period last year.

Announcing the results, Indian Bank Chairman and Managing Director T.M. Bhasin said the bank's total income rose to Rs 3,773.75 crore during the period under review, up from Rs 3,377.13 crore posted during the same period last year.

The bank is targeting growth of around 17 per cent in its loan book size for the full year, he added. The bank's credit-deposit ratio stands at 73.13 per cent.

According to Bhasin, the net interest margin for the period under review stood at 3.21 per cent, against 3.30 per cent during the first quarter of the current year.

Indian Bank's capital adequacy ratio (CAR) stands at 12.96 per cent for the period ended September and the CAR would go up to 14.03 per cent if bank's half year profit was added, Bhasin said.

According to him, the bank had headroom to raise Rs 7,800 crore through Tier II bonds.

The bank's gross non-performing assets (NPA) to gross advances ratio of bank was at 2.06 per cent as against 2.03 per cent as on March 31.

Bhasin said the bank had recorded a recovery of Rs 307 crore in the first half of the current fiscal and written off Rs 103 crore as doubtful.