Indian Bank gets RBI nod for branch in Jaffna

New Delhi: State-owned Indian Bank said on Tuesday it has got approval from the Reserve Bank India to open a branch in Jaffna, Sri Lanka, and expects the branch to be functional by the end of December.

“We have just got licence from RBI for opening a branch in Jaffna and we are in process of seeking approval from the Sri Lankan authorities for the same,” Indian Bank Chairman and Managing Director T M Bhasin said after inaugurating its 1,800th branch Noida (UP).

Currently, it has a branch in Colombo . Besides, it also has a branch in Singapore.

The Sri Lankan authorities has assured the bank that clearances would be expedited, he said, adding, “we hope make the Jaffna branch operational by the end of December this year or early January.”

The Chennai-based bank has started scouting for suitable space in the city.

The bank is also exploring possibility of opening a branch at Kandy, he said.

Talking about its domestic foot-print, Bhasin said that the bank plans to open another 100 branches in the next 5 months across the country.

By the end of March 2011, the total branch network of the bank would go up to Rs 1,900 from the current level of 1,800, he said.

For the first quarter ended June, 2010, Indian Bank recorded an 11 per cent increase in net profit at Rs 368.15 crore. It had a net profit of Rs 331.66 crore during the corresponding quarter of the last fiscal.

The bank also reported an 11.07 per cent increase in its total income in the first quarter at Rs 2,477.25 crore compared to Rs 2,230.39 crore.