Treasury income boosts Indian Bank’s Q2 profit

Chennai, Nov 2 (IANS) Cashing in on the opportunity, Indian Bank earned Rs.1,207.56 crore from treasury operations last quarter and posted a net profit of Rs.369.31 crore, a top official of the bank said.

Indian Bank’s last quarter’s treasury earnings were boosted by a whopping Rs.232.07 crore as compared to Rs.975.49 crore earned for the quarter ended September 30, 2014.

The bank’s profit for the second quarter rose to Rs.359.31 crore this fiscal – up from Rs.314.33 crore posted during the corresponding period the previous year.

Referring to the whopping increase in treasury income while the income from other segments did not grow much during the period under review, managing director & CEO Mahesh Kumar Jain said the bank cashed in on the opportunity.

According to him, the bank made a conscious decision of not growing its loan book size while the focus was on quality advances and lowering high-cost deposits.

He said the bank’s advances stood at Rs.122,428 crore as on September 30, 2015 – up from Rs.116,646.14 crore at the end of September 30, 2014.

According to Kumar, Indian Bank shed high-cost deposits totalling Rs.4,689 last quarter.

Indian Bank’s gross non-performing assets (GNPA) to gross advances ratio and the net NPAs to net advances ratio went up to 4.61 percent and 2.60 percent respectively as on September 30, 2015, from 4.21 percent and 2.55 percent last year corresponding quarter.

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