Indian Bank launches mobile ATM to help public deal with Covid-19 crisis

Indian Bank has launched a mobile ATM initiative to provide services to people at risk of travelling for withdrawal of cash.

A mobile van carrying ATM will be moving around Chennai city and will remain in each place for a specific period, since the outbreak and spread of the Coronavirus is disrupting normal and routine life, said bank officials.

Banking is an essential service during this crisis, because of which all the branches of Indian Bank are functioning to offer basic services to their customers, said the Bank.

Customers of Indian Bank and other banks can use the services of these ATMs.

It has plans to cover five stops for 30-40 minutes each in a day between 10 a.m. and 2 p.m. The service is availlable in Chennai currently.

Indian Bank posts 74% growth in PBT at Rs 390.35 crore for Q3FY20

Indian Bank on Friday posted a growth of 74.8 per cent in Profit Before Tax (PBT) at Rs 390.35 crore during the quarter ended December 2019, as compared to Rs 223.36 crore during the same period last year. The total income grew 23.4 per cent to Rs 6504.46 crore during the quarter, against Rs 5269.74 crore in Q3 FY19.

Padmaja Chunduru, MD & CEO, Indian Bank said that parameters have improved and the quarter witnessed a peculiar growth. Despite one big account turning NPA, the Bank managed to report good numbers, she said.

The performance was in line with expectations, Padmaja added.

Gross Non-Performing Assets (GNPA) as a percentage of gross advances have come down to 7.21 per cent during the quarter, from 7.48 per cent in the corresponding quarter last year. Meanwhile, net NPA also came down to 3.50 per cent compared to 4.42 per cent in the same quarter of FY19.

Indian Bank third quarter provisions for NPA remained at Rs 1,702.4 crore as against Rs 720.9 crore (QoQ).

The Bank has received Cntre’s "in-principle" approval from Alternative Mechanism for the proposed amalgamation with Allahabad Bank.

The Bank has provided Rs 1,004 crore for divergence in provisioning and also re-classified three standard accounts amounting to Rs 184 crore as fresh NPA, as pointed out by RBI as part of RBS exercise for the year ended March 2019.

During the second quarter of the current financial year, the bank received Rs 2,534 crore from the Centre towards preferential allotment of equity shares and has executed the allotment.

Indian Bank reports Rs 1,004-crore divergence in provisioning for bad loans

Indian Bank has reported a divergence in provisioning of Rs 1,004 crore during the year ended March 31, 2019. The bank had reported a provisioning of Rs 6,131.86 crore for non-performing assets, while the Reserve Bank of India (RBI) had assessed provisions of Rs 7,135.85.

The bank on Friday submitted to the exchanges a report of divergence in asset classification and provisioning for NPAs according to the risk assessment report of the RBI for 2018-19. With a divergence in provisioning, the adjusted notional net loss for the year came to Rs 333.21, against the reported net profit of Rs 321.95 crore (both figures after considering deferred tax assets).

The market regulator on Thursday directed all listed lenders to make disclosures pertaining to divergences and provisioning within a day of receipt of the RBI’s final risk assessment report.

Indian Bank gets board nod to raise Rs 5,000 cr, merge with Allahabad Bank

Indian Bank has obtained Board approval to raise Rs 5,000 crore from the centre through preferential allotment. The bank's board met Wednesday in New Delhi and, in addition to capital-raising, gave its nod for the proposed merger with Allahabad Bank.

"The proposed merger will create a robust entity with a Pan-India presence. Indian Bank, the anchor bank in this merger, enjoys a strong presence in Southern India while Allahabad Bank has cemented its position in the northern and eastern parts of the country," said Padmaja Chunduru, MD & CEO, Indian Bank.

"Further, the merger will lead to the emergence of a strong globally focused bank with a cumulative experience of over 266 years (Indian Bank is in existence for 112 years whereas Allahabad Bank is a 154-year-old Bank)," she added.

"The combined bank will provide more growth and learning opportunities to the employees and will be a win-win situation, given the different strengths of the dedicated workforce. Going forward, Indian Bank aims to emerge amongst the leading banks in the banking industry, given the efficiency of its operations and excellent customer service track-record through multiple platforms – both offline and digital," she had earlier said.

"Post-merger it will be the seventh largest, going by the numbers in March 2019. We are expecting the merger to take place by March 31, 2020. In two years from the merger, we want to make it the fifth largest," she said.