Indian Bank on Wednesday reported a whopping 670% rise in its net profit for the third quarter ended December 31 to Rs 373.48 crore. The Chennai-headquartered bank had registered net profit of Rs 48.47 crore in the corresponding period of the previous year. Shares of the lender jumped nearly 6% on impressive results. For the nine-month period ended December 31, 2016, the net profit surged 77.5% to R1,085.97 crore from R611.49 crore in the year-ago period.
Managing director and CEO Mahesh Kumar Jain said the rise in net profit was because of a decrease in provisions and increase in the operating profit.
Total provisions for the latest quarter stood at R647.69 crore as against R718.23 crore in the same period of the last year, he said. “Our last year net profit was R42 crore. Our operating profit also grew. It grew to R1,021.18 crore (for the period ending December 31, 2016) from R760.52 crore registered during same period of last year,” Jain said.
Total income increased to R4,557.25 crore for the third quarter from Rs 4,444.58 crore during the same quarter a year ago.
Net NPAs as a percentage of total loans rose to 7.69% at the end of December 31 from 5.61% in the year-ago period.
CASA deposits (domestic) grew by R17,306 crore (33.47%) to R69,003 crore from R51,698 crore and the share of CASA deposits reached a level of 38.71% from 30.71% . Net interest margin (NIM) touched 2.52% as against 2.31%.
Other income was at R599.70 crore, a growth of 36.60% over R439.01 crore.
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On the outlook, Jain said the bank would focus on increasing the retail lending while reducing the corporate credit. “We feel there will be some kind of growth in micro, small and medium enterprise segment. We expect housing loan will lead the growth in retail sector this year. We also want to reduce the corporate credit.”
The bank’s net worth increased to R14,533.18 crore from R14,184.36 crore in the previous quarter.
Shares jump 6% on stellar Q3 show
Shares of Indian Bank surged nearly 6% after the lender reported a more than seven-fold jump in its net profit for the third quarter. The stock jumped 5.63% to settle at R272.15 on the BSE. During the day, it soared 8.28% to R279 – its 52-week high. On the NSE, shares went up by 5.74% to close at R272.40.
KVB Q3 net down 24%
Karur Vysya Bank (KVB) on Wednesday reported a 24.26% drop in its net profit at R115.76 crore for the third quarter, compared with R152.83 crore in the same quarter of the previous fiscal.
Total income stood Rs 1,581.26 crore as against Rs 1,525.14 crore. During the third quarter, the ratio of gross NPA to gross advances increased to 2.66% from 1.91% in the same quarter last year, while the ratio of net NPAs to net advances increased to 1.68% from 0.96%, the bank said in a release.
Aggregate business stood at Rs 93,525 crore, up from Rs 85,208 crore a year ago. Deposits were at Rs 55,066 crore, up from Rs 47,336 crore. Gross advances grew to Rs 38,459 crore from Rs 37,872 crore. fe Bureau