As per RBI's stipulation, banks are required to finalise their audited financial accounts by June 30.

According to sources, rising non-performing assets are likely to trigger a rise in Indian Bank's net loss in financial year 1998-99. Indian Bank has accumulated net loss of Rs 2,026.99 crore over the last few years.

As on March 31, 1998, the bank had a total deposits base of Rs 15,422.73 crore and advances to the tune of Rs 7,260.43 crore. The bank's investments were worth Rs 6,873.23 crore in March 1998.

Indian Bank has 1,494 branches spread over the country with a total staff strength of 26,994.

Sources close the bank said despite the best efforts, thebank management has not been able to stem the loss. "The results could not be finalised as there have been problems in some of the high-value accounts," sources close to the bank said.

The bank's capital adequacy ratio as on March 1998 was 1.41 per cent and its percentage of net non-performing advances to net advances was 26.01 per cent. Subsequently, its capital adequacy ratio went up following fresh funds infusion by the centre in the form of recapitalisation bonds.

In the auditors' report for the fiscal 1998, the auditors claimed that the bank had not made provisions to the tune of Rs 31.17 crore under the head pension liabilites and income tax demand aggregating Rs 85.72 crore.

Industry sources said Indian Bank is possibly waiting for the report of the Verma panel on weak banks which is expected to come out with some concrete suggestions in regard to three weak banks -- Uco Bank, UBI and Indian Bank. The panel is likely to submit the report to central bank by the end of July.

Uco Bank and UBIhave managed to improve their financial performance in 1998-99. Uco Bank was successful in reducing its net losses by 29.4 per cent to Rs 67.77 crore for financial year 1998-99 from Rs 96 crore in the previous fiscal. UBI reported a 53 per cent increase in net profit to Rs 14.7 crore for the year ended March 31, 1999 against Rs 9.62 crore in the previous year.

Plagued by very high level of non-performing assets, Uco Bank's accumulated net loss since 1995-96 is pegged at Rs 509.11 crore and that of UBI's Rs 348.10 crore.

ends.