Transfer reactions 56Fe(12C, xN) have been investigated. Angular distributions of particles following elastic scattering, one neutron and one proton transfer reaction channels leading to low lying states in respective residual nuclei have been measured. These are analysed using the coupled reaction channel (CRC) formalism. Starting with a double folded real potential, the elastic scattering angular distribution is calculated using the computer code FRESCO. Inclusion of couplings to first excited states in both the target and the projectile already tends to describe the experimental elastic scattering distribution. Additional coupling of one neutron transfer reaction to first five excited states in 55Fe and one proton transfer reaction to first three low lying states in 57Co improves fit to the elastic scattering angular distribution. Further refinement in fit is brought about by addition of a weak imaginary potential to the complex potential calculated by ERESCO to simulate the absorption effects due to those channels whose coupling is not included explicitly. Such a potential describes the experimental angular distributions for elastic, one neutron and one proton transfer channels correctly in shape and magnitude without any arbitrary normalisation.