INDIAN BANK’S BUSINESS GROWS BY 17.2% in Q1 FY
2013-14
CLOCKS
8.65% Q-O-Q GROWTH IN NET PROFIT
NET
NPA CONTAINED AT 2.3%
The Board of
Directors of Indian Bank has reviewed and adopted the Balance Sheet and Profit
& Loss account for the first quarter of the financial year 2013-14 at its
meeting held on July 29, 2013.
Briefing the Print
& Electronic Media, Shri T M Bhasin, Chairman and Managing Director of the
Bank, shared the major highlights of the Bank’s performance for Q1 FY 2013-14.
The
Chairman informed the media that the Global Business of the Bank has increased
to R. 2,58,795 crore, registering a year-on-year (y-o-y)
growth of 17.2 per cent. Total Deposits
stood at R. 1,49,582 crore, recording a
growth of 17.8 per cent and Gross
Advances of the Bank grew at 16.3 per cent to R. 1,09,213 crore.
The MSME portfolio of the Bank saw a
strong y-o-y growth of 30.7 per cent to R. 14,089 crore while Agriculture advances grew by 21.1 per cent
to R. 17,197 crore. While Retail
loans increased by 26.4 per cent y-o-y to R.17,175 crore in Q1 FY2013-14, Housing loans increased by 16
per cent to R. 6976 crore.
Operating Profit of the Bank at R. 859 crore, recorded
a sequential growth of 52.2 per cent and y-o-y growth of 2.27 per cent.
Net Profit of the Bank increased
sequentially by 8.65 per cent to R. 317 crore. The Bank
has made higher provisions than required for NPA, Pension, Salaries and
Gratuity to the tune of R.419.50 crore. Total Operating Revenue of the Bank at R.1626 crore grew by 3.7 per cent (q-o-q) and
18.2 per cent (y-o-y).
With regard
to the Key Ratios, the Chairman informed that the Net Interest Margin
(NIM) was
at 2.74 per cent. Return
on Average Assets (RoA) was at 0.76 per cent from 0.70 per cent in the
previous quarter.
Cost-Income
ratio has also shown a sequential improvement from 63.99 per cent in Q4 of 2012-13
to 47.17 per cent in Q1 FY2013-14.
The Net worth
of the Bank has improved to R.11,156.23
crore from R. 10,838.84 crore in March 2013, the Chairman stated. While the Capital Adequacy Ratio as per Basel II was at 13.06 per
cent for end-June 2013, taking into account the plough back of profits in Q1,
the CRAR improves to 13.39 per cent. As
per Basel III, it was at 12.58 per cent.
Regarding the Asset Quality,
the CMD shared that the Bank has made a robust NPA recovery of R.235 crore.
Gross NPA to Gross Advances
ratio and Net NPA to Net Advances ratio stood at 3.41 per cent and 2.31 per
cent respectively as at end-June 2013, he said.
The
Bank has expanded its distribution network to 2099 branches as at end-June
2013. Besides, the Bank has three foreign branches in Singapore, Colombo and
Jaffna. The Bank also has 1449 ATMs in operation. In the current year, the CMD stated that the
Bank has plans to open 150 branches and 3 branches overseas in Hambantota,
Batticaloa and Trincomalee in Sri Lanka.
CMD also informed that the year 2013-14 has been
dedicated for growth in Retail portfolio and Recovery.
The Bank’s
IT and other initiatives include among others, rolling out 1000 Cash Dispensers
by January 2014, besides providing biometric solution to all CBS users. As at
end-June 2013, the Bank has operationalised 194 Cash Dispensers and biometric
solution has been implemented in 829 branches to prevent frauds and enforce
non-repudiation.
The Bank
has also enabled seeding of AADHAAR number through SMS and ATMs. The Bank has
operationalised its web portal for online collection of Arogya Raksha premium
and generation of e-policies by United India Insurance Company for its customers.
The Bank has received many awards and accolades in
the recent past. Some of them are:
§
Bank has attained the first rank and has
been conferred with the National Award for Excellence in Lending to Micro
Enterprises by Ministry of MSME, GoI for FY 2012 from the august hands of
Hon’ble President of India, Shri Pranab Mukherjee on April 03rd 2013 at
Vigyan Bhawan, New Delhi.
§
SKOCH
Digital Inclusion Award 2012 for exemplary use of technology in Financial
Inclusion.
§
SKOCH
Challenger Award 2012 - Banking for outstanding contribution in providing
banking services to the unreached villages through various Financial Inclusion
initiatives.
§
SKOCH
Financial Inclusion Award 2012 for completion of 100 per cent Financial
Inclusion in UT of Puducherry.
NFS ATM Operational Excellence Award 2012 -
§
Runner-up
under ‘Public Sector Banks’ category constituted by NPCI in recognition of
excellent performance in respect of ATMs and Switch connected to NFS ATM
Network
§
The
Sunday Standard FINWIZ Award 2012 by New Indian Express for Quickest
Turnaround.
§
Master Card Innovation Award – Prepaid Card Program to the Bank for innovative prepaid card
sales, targeting corporate entities by M/s. Master card International.
****
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Chennai
July 29, 2013
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Mazher Shaikh