Chennai based Indian Bank reported a net profit of Rs 209.31
crore for the quarter ended June 30. This was a fall of almost 44% over the
corresponding quarter last year.
The bank
is among the better performing PSU banks in the current scenario when most of
them are grappling with high NPAs. It was one of the only two out of 21 PSU
banks to book a profit in the preceding quarter.
The net interest income, which is the total interest earned less interest
expended on deposits, saw a rise of almost 24% to Rs 1807 crore.
The gross non-performing assets, or total bad loans on the bank’s books, stood
at Rs 11,827 crore, up from Rs 9653 crore at the end of the same quarter last
year. However, the share of gross NPA to total lending remained stable at 7.2%
due to a more than 20% increase in total lending. This is the second lowest
gross NPA share amongst PSU banks after Vijaya Bank.
Total deposits grew by 9.77%. up from Rs 1.9 lakh crore to Rs 2.1 lakh crore.
The bank set aside Rs 1029.6 crore as provisions of which Rs 456.6 crore were
for NPAs. Another Rs 362.75 crore were provided for mark to market (MTM)
losses, leaving MTM losses to the tune of Rs 636.1 crore to be provided for in
the subsequent two quarters. This is in accordance with RBI’s special
dispensation to allow banks to spread provisions for MTM losses over four
quarters starting the quarter ended 31 March.
No comments:
Post a Comment