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State-Owned 'Indian Bank' Become One Of The Most Profitable Banks Of India In FY2018

JAVED SAIFI | 0
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| July 29 , 2018 , 12:25 IST

The state-owned Indian Bank scripted a new turnaround in the fiscal year 2017-18 after being involved in corruptions two decades ago when it was bailed out by the government to survive.

The Indian Bank has recorded a net profit of Rs 1,259 crore for the fiscal year 2017-18 on Sunday when other banks are facing troubles from the huge net losses in the same period.

From other top banks in India, Punjab National Bank has recorded a net loss of Rs 12,283 crore, Indian Overseas Bank has recorded a net loss of Rs 6, 299 crore, Bank of India has recorded a net loss of Rs 6044 crore, Oriental Bank of Commerce has recorded a net loss of Rs 5,872 crore and Union Bank of India has recorded a net loss of Rs 5,247 crore in the fiscal year 2017-18.

Also Read: IndusInd Bank Net Profit Up By 26% For FY2018, Q1 2018-19 Net Profit Is Rs 1,035 Crore

There are more other banks that faced acute losses in the fiscal year 2017-18.

The Indian Bank demands collateral security with sentimental value and primary securities such as the deed of the project land to have an edge over bad loans. It gives an additional leverage in negotiations to Indian Bank. These are the reasons for the success of Indian Bank.

The Indian Bank also has the lowest non-performing assets (NPAs) in the industry when most of the banks facing spiralling NPAs.

Its gross NPAs are the lowest in the industry with just 7.37 percent of gross loans. Net NPA for the fiscal year 2017-18 was only 3.81 percent.

The Indian Bank has recorded a total Income of Rs 19,519 crore in the fiscal year 2017-18.

Also Read: Swiss Bank Deposits Dropped By 80% Under Modi Govt: Interim Finance Minister Piyush Goyal

The 111-year-old bank has 2,820 domestic branches, 3 overseas branches for its 46 million customer base as on March 31, 2018. It has its overseas branches in Singapore (1) and Sri Lanka (2).

IndusInd Bank's net profit was also up by 26 percent for FY 2017-18 at Rs. 3,605.99 crores, Deposit growth up 20 percent, Credit growth up 28 percent, CASA growth up 43 percent and Saving Deposit Growth up 70 percent.