Indian Bank Q3 down 37% at Rs 330.58 cr
Indian Bank today reported 37.1 per cent decline in net profit at Rs 330.58 crore for the third quarter ending December 31, 2012.
The city-based public sector bank registered net profit of Rs 525.92 crore in year-ago period.
Total income for the third quarter rose to Rs 3,786.68 crore from Rs 3,505.25 crore in the year ago period.
Attributing the decline in net profit to provision of Rs 40 crore towards pension corpus option given to VRS optees, bank's Chairman and MD T M Bhasin told reporters here that the bank has made another provision of Rs 15 crore during November and December towards wage revision of employees and officers.
He said in the third quarter ending last year, the bank had two exceptional income items comprising reversal of provision amounting to Rs 52 crore towards deferred tax liability and one time Rs 51 crore income from foreign exchange portfolio.
To a query on RBI cutting its key interest rates by 0.25 per cent and releasing Rs 18,000 crore additional liquidity into the system, Bhasin said: "Rs 130 crore amount of funds is what has been released (by Reserve Bank to us). It will generate an additional income of 33 per cent".
"We have decided to pass on the advantage (to our customers) and we have decided to reduce the base rate to 10.20 per cent from February 9, by 30 basis points (0.30 per cent) from the present 10.50 per cent," he said.
Detailing about the bank's performance, he said the total business in December 31,
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