Following overall operational efficiency, high quality credit, better cost management and improved net interest income margins, public sector lender Indian Bank has reported a 52.40% rise in its net profit for the first quarter ended June 30, 2009 to Rs 331.66 crore, against Rs 217.62 crore in the same quarter last year, said chairman and managing director M S Sundara Rajan.
Addressing a press conference in Chennai on Thursday to announce the financial results, he said the better performance has been due to the improvement in the net interest margin (NIM) to 3.58% as compared to 3.17% during the same quarter last year. The cost income ratio was lower at 42.04% as against 44.22%, he said.
The bank’s net interest income (NII) rose to Rs 737.68 crore as against Rs 539.53 crore, a growth of 36.73% on year-on-year basis. The fee based income registered a growth of 43.97% to Rs 350.15 crore as compared to Rs 243.21 crore during the same quarter last fiscal. The total income grew 27.82% to Rs 2,230.39 crore as compared to Rs 1,744.99 crore, he added.
The total business grew 20.63% to Rs 128,701 crore as of June 30, 2009 from Rs 106,691 crore. Of which the deposits grew 23.31% to Rs 76,717 crore while advanced witnessed a growth of Rs 16.88 crore to Rs 51,984 crore.