Monday, February 4, 2008

Indian Bank Shares Up 12.45%

MUMBAI: Indian Bank shares on Monday were up 12.45 per cent at Rs 247.55. It was the biggest gainer among banks and PSU companies.

Indian Bank reported 61.45 per cent increase in net profit for the third quarter ended Dec 31, 2007 at Rs 307.50 crore compared to Rs 190.50 crore in the quarter to Dec 2006.

Operating profit increased by 59.62 per cent to Rs 463.22 crore for the period as against Rs 290.20 crore during the corresponding period in 2006.

The bank's overall business grew by 23.96 per cent to Rs 90,015 crore from Rs 72,617 crore. Total deposits rose 18.07 per cent from Rs 45,157 crore to Rs 53,317 crore.

The bank expects to increase deposits by 20 per cent and 25 per cent on advances by the end of this fiscal. The bank plans to open 40 more branches by the end of March.

Indian Bank is looking to recover over Rs 650 crore from bad and written-off assets during the current fiscal and has made a provisioning of Rs 432 crore.

The state-run bank recovered Rs 451 crore during the nine months to December and Rs 653 crore during 2006-07.

Religare Securities recommended ‘buy’ on Indian Bank for a target price of Rs 257, after the bank announced its Oct-Dec results on Jan 11.

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