State-owned Indian Bank has fared better among the PSU banks by recording highest returns on assets for the financial year ended March, 2011, according to an analysis of the annual results.
The Chennai based lender clocked an Return on Assets (RoA) of 1.53 per cent for 2010-11, highest among 21 public sector banks. The lowest RoA was generated by Bank of Maharashtra at 0.47 per cent.
RoA is an indicator of how profitable a company is relative to its total assets. It gives an idea of the efficiency of the management in using its assets to generate earnings.
Bangalore-based Canara Bank comes next with RoA of 1.42 per cent at the end of 2010-11 and Andhra Bank with 1.36 per cent, according to the analysis.
However, the country's largest lender State Bank of India (SBI) in its results declared this week announced RoA of 0.71 per cent.
As many as 10 public sector banks had RoA of one or more than one per cent while the remaining 11 lenders had less than 1 per cent during the fiscal ended March 2011.
In terms of Provision Coverage Ratio (PCR), as per the analysis, Indian Bank tops the chart with the ratio of 84.3 per cent.
The Reserve Bank has prescribed a minimum PCR of 70 per cent.
Andhra Bank with PCR of 83.9 per cent is second in the chart followed by Delhi-based Punjab & Sind Bank with 81.8 per cent.
For 2010-11, Indian Bank's net profit rose by 10.23 per cent to Rs 1,714.07 crore compared to Rs 1,554.98 crore in the previous year.
Total income during the year expanded by 16.74 per cent to Rs 10,542.91 crore against Rs 9,030.77 crore in 2009-10.
Net Interest Margin of the bank improved to 3.75 per cent in FY'2011 from 3.55 per cent in the previous fiscal.
The bank proposed a dividend of 75 per cent or Rs 7.50 per share of face value of Rs 10 each for 2010-11.