Mumbai: Indian Bank posted a 66.8% fall in net profit in the second quarter on account of trading losses and higher provisions, it said on Friday.

The bank’s net profit stood at 150.14 crore in the second quarter compared with 451.55 crore in the same quarter last year. Other income growth fell by 40% to 428.3 crore in the September quarter compared with 714.6 crore year-on-year due to mark-to-market losses.

Asset quality deteriorated with gross non-performing assets (NPAs) rising to 7.16% of the gross advances as of September-end 2018, as against 6.67% a year ago. Net NPAs too increased to 4.23% of net advances at the end of the second quarter, from 3.41% in the year-ago period.

Provisions jumped by 35% to 1,004.33 crore compared with 744.55 crore during the same quarter in the preceding year.

The bank added fresh bad loans worth 1,624 crore during the September quarter compared with 1,038 crore in the previous quarter.

In a call to analysts, the bank’s management said that it expects 1,000 crore of slippages per quarter till the end of the year.

The management also said that the bank has an exposure of 1,800 crore to Infrastructure Leasing & Financial Services Ltd (IL&FS), of which the bank has classified 280 crore as non-performing asset. The bank told analysts it expects to maintain gross non-performing assets below 7% and net non-performing assets at 3.5% for the full financial year.

The bank added that it expects to recover 850 crore from resolutions of accounts referred to the National Company Law Tribunal.

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