At a time when the banking sector is under stress, Indian Bank (IB), the oldest bank from Tamil Nadu, founded in 1908, has recorded impressive results of Rs 300,436 crore global business, broken into Rs 175,438 crore of global deposits and Rs 124,998 crore of global advances. Total income of the bank stood at Rs 4494 crore against Rs 4144 crore last year, a growth of 8.4 per cent.
While the sector as a whole is suffering from NPAs, IB curtailed its gross NPA to Rs 145 crore during the quarter, marking its lowest in the last twelve quarters. M K Jain, Managing Director and CEO pointed to concerted efforts being taken by the bank in this regard. A separate vertical tracks the defaulting accounts. On a default, the bank sends a soft SMS to its customers. Jain said that the strategy has yielded better results in preventing defaults. “Next month we plan to auction online the properties mortgaged relating to around 280 accounts worth about Rs 600 crore?” said Jain.
The operating profit recorded a Y-o-Y growth of 11.25 per cent. CASA deposits grew by 15. 48 per cent to Rs 49,452 crore of which savings bank deposit grew to Rs 42,294 crore. I B has targeted a credit growth of 13 per cent for the year.
The bank plans to open 150 branches and 250 ATMs and increase its presence in the northern and western parts of the country. With a high government holding, the bank is capitally self Sufficient as of now.