Indian Bank net slips 38% in Q2

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SummaryChennai-based public sector lender Indian Bank has registered a 38% fall in net profit at R306 crore

Chennai-based public sector lender Indian Bank has registered a 38% fall in net profit at R306 crore in the September quarter against R497 crore in the same period last year. The total income of the bank stood at R4,078.24 crore. The bank has made NPA recovery of R410 crore. The gross NPAs to gross advance ratio and net NPAs to net Advance ratio stood at 3.76% and 2.56%, respectively.

Indian Bank chairman and managing director TM Bhasin said the decrease in net profit was on account of the reduced earnings from profit-on-sale of investments at jut R11 crore in the second quarter. The bank had netted R314 crore from sale investments in the first quarter. “Because of unfavourable market coniditions, we could not monetise through sale of investments which had a bearing on our bottomline,” he said.

The global business of the bank recorded a year-on-year (y-o-y) growth of 16.1% to R2,63,758 crore. The total deposits stood at R1,52,687 crore, registering a growth of 16.4% while gross advances of the bank grew at 15.8% to R1,11,071 crore. The MSME portfolio of the bank saw a strong y-o-y growth of 25.7% to R14,906 crore while agriculture advances grew by 16.1% to R17,484 crore. The return on average assets (RoA) stood at 0.7%, while net interest margin (NIM) was at 2.68%, Bhasin said.

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