June 14, 2010 (LBO) –Indian Bank’s March quarter profits rose 32.4 percent to 296.3 million rupees on lower operating costs and reversals on provisions, while net interest margins shrank from lower interest income and dud loans rose, its accounts showed. In the March 2010 quarter, the Sri Lankan unit of Indian Bank said interest income was down almost 21 percent to 777.1 million rupees, while interest expenses fell 44 percent to 206.3 million, resulting in a net interest income of 570.8 million rupees, down 6.8 percent.
Foreign exchange income rose 40.5 percent to 15.2 million rupees, while other incomes which are usually made up of fee based services fell 21.1 percent to 27.5 million rupees.
Operational expenses such as wages, premises rent and depreciation costs fell 13 percent to 116.7 million rupees.
In the March quarter there was a reversal on a provision of 21.6 million rupees, while in the same quarter last year the Indian Bank had made a provision of 55.1 million rupees, its accounts showed.
Tax costs were down 6.0 percent to 140.4 million rupees.
Indian Bank’s net loan book had shrunk 30.8 percent to 3.78 billion rupees.
Performing loans were down 30.7 percent to 3.78 billion rupees, while non-performing loans