Indian Bank pays dividend after a decade, revives subsidiary

Kolkata, Jun 30 (UNI) Public sector Indian Bank ,which had recorded a massive turnaround last year and earned a net profit of Rs 500 crores, is now all set to embark on a massive capital restructuring programme to widen its capital base.

Stating this to newsmen here today, Indian Bank Chairman and Managing Director K C Chakraborty said after toying with several options, they were most likely to opt for preferential share route since it was already cleared by the union cabinet and was awaiting RBI's approval as it required some amendments.

" We might also go for the Initial Public offering to raise the additional fund for the restructuring programme, Dr Chakraborty said but refused to elaborate any further details, including the proposed size of the IPO, because of SEBI guidelines.

Dr Chakraborty who arrived here today in connection with tomorrow's launching of a pilot programme of the bank in a West Bengal village, said the Bank's Board of Directors had also decided to revive one of its two subsidiaries this year through some fresh capital infusion.

Further elaborating, he said the Indian Bank subsidiary-'Inbank Merchant Banking Company Limted' which was a listed company,turned sick a few years ago by suffering heavy losses of over Rs 90 crores. But following the turnaroud of the parent bank, they had decided to revive the sick subsidiary, while the decision for the other subsidiary of the bank would be taken later.

Referring to his other plans, the Indian Bank CMD said besides opening about 60 new branches within the country to add to the present about 1,440 branches by this year end, they had decided to refurburish Indian Bank's two foreign branches in Singapore and Colombo in the wake of renewed business interest generation there.

"Moreover, we are planning to open at least two representative offices in Indonesia and Vietnam to tap business potential in these two emerging Asian economic giants," Dr Chakraborty said but expressed apprehension that because of capital inadequacy of the Bank some more time might be required before getting the necessary clearance from RBI.

Asked about the Bank's focussed areas of business in the coming years, Dr Chakraborty said it included Agricultural, SMEs and Retail sectors each of which was poised to record over 20 per cent growth last year.

About his business target for the current fiscal after registering around 18 per cent growth in overall business turnover to Rs 63,000 crores last fiscal, the Indian Bank CMD said before March deposits were set to grow by at least 16 per cent, advances by 20 per cent and profitability by around 25 per cent.

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