Public sector lender Indian Bank posted a 4% increase in profit at Rs 215 crore for the first quarter of FY16, up from Rs 207 crore...
Public sector lender Indian Bank posted a 4% increase in profit at Rs 215 crore for the first quarter of FY16, up from Rs 207 crore in the year-ago period. Total income of the bank stood at Rs 4,494 crore against Rs 4,144 crore last year, a growth of 8.4%.
Mahesh Kumar Jain, MD & CEO (additional charge), said the lender could register only a modest growth in net profit because of higher depreciation of Rs 138 crore on investments on a mark-to-mark basis due to the yield curve spike owing to the eurozone crisis.
Claiming that the bank could effectively control asset quality deterioration. Jain said the increase in gross NPAs was curtailed to Rs 145 crore during the quarter, which was the lowest in the last 12 quarters. As on June 30, 2015, the bank’s gross NPAs stood at 4.65% and net NPAs at 2.62%. In absolute terms, gross NPAs rose to Rs 5,815.14 crore from Rs 4,722.87 crore. In percentage terms, it rose to 4.65% from 4.01%. Domestic Casa deposits grew 15.48% to Rs 49, 452 crore of which savings bank deposits grew 15.88% to Rs 42,294 crore.