Indian Bank Q3 net profit declines 19% to Rs303 crore
Mumbai: Indian Bank Ltd on Monday said its third-quarter net profit fell 18.85% on the back of higher provisions and lower other income.
The bank has posted a net profit Rs303.06 crore for the three months ended 31 December compared to Rs373.48 crore in the same quarter last year.
Profit was lower than Rs426.9 crore estimated by a Bloomberg poll of three analysts.
Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 30.17% to Rs1,622.70 crore from Rs1,246.58 crore in the corresponding period last year.
Other income, which includes core fee income, lost 8.48% to Rs548.85 crore in the three months ended 31 December from Rs599.70 crore a year ago.
Gross non-performing assets (NPAs), as a percentage of total advances, were at 6.27% in the December quarter compared with 6.67% in the September quarter and 7.69% in the year-ago December quarter.
Provisions during the quarter increased 69.93% to Rs918.12 crore as against Rs540.29 crore in the year-ago quarter. In the July-September quarter, the bank had set aside Rs744.55 crore in provisions.
Post-provision, the net NPA ratio was at 3.3% against 3.41% in the July-September quarter and 4.76% in the year-ago quarter.
At 1.47pm, shares of the bank gained 5.92% to Rs359.45 apiece, while the benchmark Sensex index gained 0.57% to 34,198.55 points.