Public sector Indian Bank has reported an over three-fold jump in standalone net profit at Rs 319.70 crore for the quarter ending March 31, 2016. The Chennai-headquartered bank had recorded net profits at Rs 93.62 crore during the corresponding quarter of 2015-16. Total income in the January-March 2016 quarter increased marginally to Rs 4,601.89 crore against Rs 4,522.73 crore, according to Indian Bank MD and CEO, Kishor Kharat.
Declaring the annual results, Kharat said the overall bank’s performance for the financial year 2016-17 was good due to various reasons including, rise in operating profits by 31.9 per cent. Capital Adequacy ratio which was 13.20 per cent as of March 31, 2016 was at 13.64 per cent as of March 31, 2017.
“Bank is poised for good growth this year.. We will undertake the growth path this year.. This (financial) year Indian Bank will come up with follow on (public) offer so that the government share holding will be less than 75 per cent as per SEBI guidelines,” he told reporters here.
Elaborating on the fund raising plan, he said, “We will grow our business size to Rs 3.60 lakh core (as on March 31, 2018) from Rs 3.15 lakh crore that will give us a growth of 11.5 per cent to 12 per cent”.
“We expect 10-12 per cent growth in deposits and advances by 11-12 per cent growth,” he said. The government holding in the bank is 82 per cent, currently.
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When asked to give a ball park figure on how much the bank would raise through issue of bonds, Kharat said, it would be in excess of around Rs 1,000 crore. “We have to reduce 7 per cent of government share holding in the bank.”
On the focus area for the financial year 2017-18, he said, it would be based on business parameters, operational efficiency, asset quality and digital banking.
“We expect the Gross NPA to be less than 7 per cent while net NPA under 4 per cent as of March 31, 2018.. We expect provision coverage ratio to be above 60 per cent,” he added.
To another query on slippages, he said, it was controlled as of March 31, 2017, at Rs 3,331 crore compared to Rs 5,704 crore as of March 31, 2016.
The board of directors which met today recommended a dividend of Rs 6 per equity share of Rs 10 for the year ending March 31, 2017 as against Rs 1.50 per equity share of Rs 10 declared in the previous year (subject to approval of shareholders).