Indian Bank’s fourth quarter net up 69%

Indian Bank’s fourth quarter net up 69%
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First Published: Tue, Apr 24 2007. 05 39 AM IST
Updated: Tue, Apr 24 2007. 05 39 AM IST
Mumbai: State-run lender Indian Bank expects to achieve a credit growth of 20-25% in 2007-08 despite deciding to go slow on retail lending, its chairman K.C. Chakrabarty said on Monday The bank posted a 69% growth in its net profit for the January-March quarter at Rs235 crore.
The bank will also take a view on raising interest rates after the central bank’s policy review on Tuesday, he said.
“We will still work out what is our spread, we may not immediately increase our rate or we may only increase it by 25 points,” Chakrabarty said after announcing the fourth-quarter (Q4) results. The bank has maintained a net interest margin of 3.6% during the period, he added.
Chakrabarty said the bank expected to see a deposit growth of 16-17% during the current fiscal year. As of March, Indian Bank’s credit base stood at Rs28,163 crore and deposits at Rs47,091 crore.
He said the bank’s interest income in Q4 had grown faster than interest expenses.
Meanwhile, the bank has decided to exercise caution in retail lending to avoid defaults, Chakrabarty said. Retail loans currently constitute 22% of the bank’s total outstanding credit. The Reserve Bank of India has taken a series of money- tightening measures, including benchmark rate increases, to help fight inflation.
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First Published: Tue, Apr 24 2007. 05 39 AM IST