Indian Bank to launch innovative deposit scheme: CMD

Chennai, July 28 (UNI) Into its centenary year, the Indian Bank will launch a very innovative deposit scheme and has targeted to achieve 20 to 25 per cent higher net profit for the second quarter, Bank Chairman K C Chakraborthy said today.

Addressing a press conference here to announce the performance of the bank during the quarter ended June 30, he said the net profit was up by 20.68 per cent to Rs 164.81 crore from Rs 136.57 crore during June 2005.

The non-performing assets (NPA) declined to Rs 648 crore as on June 30 from Rs 736 crore and the net NPA recorded a sharp decline to Rs 141 crore from Rs 202 crore last year, he said.

The overall business of the bank grew by Rs 10.290 crore to Rs 66,288 crore from Rs 55,998 crore on year-to year basis. The total deposits of the bank increased to Rs 41,637 crore from Rs 36,511 crore.

''Though the growth was a bit slow due to higher costs, deposits grew by Rs 832 crore. We are taking corrective steps. By the end of the year we will increase the growth by 15 per cent," he said.

A noteworthy feature of the bank's performance was consistent achievement of the parameters stipulated by the Centre with regard to lending for priority sector lending.

The bank had extended loans at seven per cent for agriculture with interest rate subvention of two per cent by the Centre. It launched "Green Plus," an intensive crop loan campaign.

To a question, Dr Chakraborthy said a decision on raising interest rates on deposits will be taken by the Bank's Assets and Liabilities Committee.

He agreed the interest rate hike had affected the bank's investment portfolio. "But we are confident of improving the net profit by 20 per cent in the second quarter," he said.

The gold sale scheme, launched by the bank in March this year, had yielded a net profit of Rs one crore.

The bank's centenary celebrations will be "people oriented" with field level activity, he said, adding "we have also been wanting to go public." The bank will be launching a "Student Benefit Card" and a senior citizens benefit card, he announced.

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