Indian Bank Q2 net profit rises 11.5% to Rs452 crore
New Delhi: Public sector lender Indian Bank on Monday reported a rise of 11.45% in net profit at Rs451.54 crore for the quarter ended 30 September as bad loans declined, although provisioning to cover for such assets was raised. In the same quarter last year, the bank recorded a net profit of Rs405.14 crore.
Total income of the bank increased to Rs4,874.16 crore for the quarter, up from Rs4,579.01 crore in the same quarter of the previous fiscal, the bank said in a regulatory filing.
The lender improved on its asset quality with the gross non-performing assets (NPAs) coming down to 6.67% of the gross advances as on end-September 2017, as against 7.28% by September 2016. Net NPAs of bad loans too fell to 3.41% of the net advances at the end of second quarter this fiscal, from 4.62% in the year-ago corresponding period.
The bank’s provisioning for bad loans and contingencies was raised to Rs744.55 crore for the quarter, up from Rs478.27 crore for the same period a year earlier. Provisioning for bad loans alone stood at Rs633.36 crore, up from Rs616.44 crore as on 30 September, 2016.
The bank said it was required to made an additional provision of Rs 357.26 crore to be spread over three quarters starting from July-September 2017-18 against eight borrowal accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC).
“Accordingly, additional provision of Rs119.08 crore has been made during the quarter, leaving a balance provision of Rs238.18 crore to be proportionately spread over remaining two quarters ie December 2017 and March 2018,” it said.
At 2.01pm, shares of the bank rose 8.91% at Rs378.15 apiece on BSE, while the Sensex 0.41% to 33,822.40.