Business   

Indian Bank will be Basel-II compliant soon

HYDERABAD: Indian Bank will become Basel-II norms-compliant by the end of this month, ahead of schedule — March 2008 — and targets a business of Rs. 93,000 crore by the end of the current fiscal.

The bank’s turnover reached Rs. 86,000 crore by the end of the second quarter (ended on September 30) , according to M. S. Sundara Rajan, Chairman and Managing Director.

Talking to presspersons here on Tuesday, Mr. Rajan said the bank targeted a growth of 20 per cent in deposits and 25 per cent in advances. The credit-deposit ratio was 59 per cent which provided a lot of elbow space for encouraging advances.

The capital to risk asset ratio (CRAR) was 14.47 per cent by the end of the first quarter and the net profit was Rs. 212 crore. The Tier-I capital of the bank was put at 12 per cent. Net non-performing assets (NPAs) were 0.32 per cent, while the gross NPAs were 1.85 per cent. The bank would maintain the same level by the end of the financial year. He said the bank would announce its second quarter results in the third week of this month.

Mr. Rajan said the bank, which had opened six ‘microsate’ branches for advancing micro-credit loans to self-help groups (SHGs) in urban areas, would open another seven branches by the end of March 2008. It was targeting Rs. 1,000 crore advances through micro-credit. While it was directly extending loans to SHGs, it was also routing a few loans through NGOs and micro-finance institutions. The current outstanding of micro-credit loans was Rs. 640 crore — two per cent of the total credit of the bank — and the rate of recovery was 99.5 per cent.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

IMF projects 8 p.c. medium term growth for India
New players keen to tap telecom potential
Gas shortage hits power projects
Indian Bank will be Basel-II compliant soon
Assigning offshore work to India remains strong
CIL, DVC, BEML renew bid to take over MAMC
New initiatives from NIIT
Solar Semiconductor’s deal with German firm
Infotech to map Chennai, Ahmedabad
DRL starts operations in Philippines
Hindustan Motor’s exchange offer
Khazana’s expansion plans

Copyright © 2007, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu