Indian
Bank posts Rs 274 crore net loss
Our Banking
Bureau
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Recap
revised to Rs 2,000 crore
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| The committee
set up by the government of India under the deputy governor
of RBI Mr SP Talwar has revised the quantum of recapitalisation
required for Indian Bank from Rs 1,750 crore to Rs 2,000 crore.
But there seems to be no sign of the funds being released despite
the fact that Indian Bank, which is in the midst of a three-year
restructuring programme has ‘surpassed’ almost all targets set
for it during the year 2000-01. |
Chennai,
June 3: Chennai-based Indian Bank has posted an operating profit
of Rs 61.59 crore during the year 2000-01 as against Rs 23.86 crore
in the previous year, registering a growth of 158 per cent. This
is after taking into account the amortisation of the first instalment
of voluntary retirement scheme (VRS) and other staff related provisions
such as leave encashment etc. aggregating Rs 96.01 crore. However,
the net loss of the bank during the year stood at Rs 274 crore compared
to a net loss of Rs 426.97 crore in the financial year ended March
2000.
Speaking at
a press conference, Mrs Ranjana Kumar, chairperson and managing
director of the bank said “but for the extraordinary burden of amortisation
of the first instalment of VRS and other provisions, the operating
profit of the bank would have been high at Rs 157.60 crore, which
is almost a six-fold increase over the previous year”.
She further
said that “if we had received the recapitalisation funds from the
government on time, as promised earlier our bank would have reported
a net profit during the fiscal 2001”. During the year, the global
business of the bank touched Rs 31,127 crore including Rs 21,693
crore of deposits and Rs 9,434 crore of advances.
After a gap
of nearly seven years, the domestic performance of the bank has
also improved significantly, she said. Increase in deposits reached
an all-time high of Rs 2,604 crore, registering a growth of about
14.5 per cent over the previous year. The operating profit of the
bank from the domestic business alone was to the tune of Rs 5.94
crore as against an operating loss of Rs 14.13 crore in the previous
year.
Despite several constraints the bank has recovered Rs 549 crore
in its non performing assets (NPAs) during the year. The net global
NPA of the bank is now at 10.03 per cent (Rs 950 crore) compared
to 16.18 per cent (Rs 1,327 crore) as on March 31, 2000, she added.
The bank has
been working consistently to improve its performance by introducing
competitive structured credit products including consumer credit
loans, vehicle loans, personal loan, educational loans and trade
and finance schemes. During the year, under the structured credit
products alone, the bank has disbursed loans to the tune of Rs 281
crore to over 1,05,000 customers.
The bank is
also in the process of putting in place an aggressive marketing
programme for its products. As a step towards this initiative, the
bank has selected 290 MBA students across the country for the purpose.
To begin with
the marketing programme would be implemented in 15 circles of the
bank, Mrs Ranjana Kumar said.
“We are also
doing away with our subsidiaries. IndBank Housing will be merged
with the parent latest by September this year, while Merchant Banking
and Mutual fund operations are in various stages of disposal”, she
said.
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