For the year FY10, the NPT is Rs.155812 lakhs, up from Rs.124588 lakhs in FY09. If the NPA provision is normal, the NPT would have been much higher and the EPS also would be much higher.This reflects the future growing profitability of Indian bank.
BUSINESS EXPANSION PLANS FOR FUTURE :
A recent report further says that :
Indian Bank is targeting to achieve total business of Rs 2, 10,000 Crore by end of 2011-12, up from Rs 1, 51,000 crore in 2009-10 which is 40 % growth. It also plans to open around 200 branches in 2010-11. Presently, it has 1756 branches.
The bank hopes to bring its net NPA down to zero by the end of 2011-12.
Indian Bank is currently selling mutual funds and insurance products and intends to foray into insurance business through a joint venture with an insurance player, which may be either a domestic or overseas insurance firm and a public sector bank.
MY COMMENTS : Indian Bank's asset quality is obviously quite good. But, the higher provision insulates it against any eventualities. Its Growth Plan for next 2 years indicates that INDIAN BANK is a very good buy at current prices.We can see smart increases in MP with every quarterly result.
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