Indian Bank is also targeting to improve its net interest margin to 3% from 2.79% now. In June quarter, gross NPAs jumped to 7.21% from 6.97% last year. The bank has already taken two of these accounts to NCLT and others are under process. “We do not require any capital from the government after this QIP as our capital adequacy ratio will be at 15 per cent.” The bank is also reviving its home finance subsidiary Ind Bank Housing. “We are going to put extra capital into Ind Bank Housing and will restructure the existing portfolio.”Ind Bank Housing, set up in 1991, though performed well during the initial years, it started showing financial strains due to high NPAs, making networth negative.

Source: Mint August 06, 2017 06:45 UTC