Chennai, Oct 23 : Public sector Indian Bank hopes to disburse around Rs. 8,500 crore in advances during the second half of the current fiscal out of its total pending sanctions of Rs. 17,000 crore, said a top company official here Friday.

"As of date, the bank's undisbursed loan sanctions is Rs. 17,000 crore and we hope to disburse around Rs. 8,500 crore this fiscal," said Indian Bank chairman and managing director M. S. Sundara Rajan.

"Documentations for disbursal of the sanctions are in various stages," Rajan told reporters after announcing the bank's half yearly results.

Admitting that the 12 percent growth in advances portfolio during the first six months was less than the targeted 20 percent, he said: "Industries have to borrow now for working capital requirements as they have used up their pending inventory. The bank is getting loan proposals from varied industries like sugar, cement, power and others."

Indian Bank closed the first six months with an income of Rs. 4,405 crore and a net profit of Rs. 704 crore, as against Rs. 3,646 crore and Rs. 501 crore respectively earned during the corresponding period of the previous year.

For the period under review, the bank's total business stood at Rs. 133,987 crore (deposits Rs. 80,068 crore, advances Rs. 53,919 crore) as against Rs. 112,706 crore
(deposits Rs. 64,614 crore, advances Rs. 48,092 crore) posted the previous year.

Rajan said Indian Bank increased its net interest income by 22.55 percent to Rs. 1,497 crore compared to the Rs. 1,221 crore earned during the first half of the previous fiscal.

Its net non-performing assets (NPA) for the period under review was 0.18 percent of advances, with the total NPA recovery standing at Rs. 343 crore for the period under review.

"The bank's capital adequacy ratio is a healthy at 13.2 percent and there is no need to raise additional capital till next year," Rajan said.

Looking forward, he said the bank would open 100 new branches this fiscal, of which 28 has already been opened.

"We have licence to open 12 more branches and will be applying to the central bank for 60 more," Rajan said. (IANS)