Indian Bank reported a 59 per cent decline in net profit to Rs 84.49 crore for the March quarter on higher provisioning for bad loans and contingencies.
State-owned Indian Bank on Wednesday reported a 59 per cent decline in net profit to Rs 84.49 crore for the March quarter on higher provisioning for bad loans and contingencies.
The bank had posted a net profit of Rs 206.16 crore in the January-March period of the previous fiscal.
“Total income has increased to Rs 4,513.60 crore for the quarter ended March from Rs 4,410.49 crore for the quarter a year ago,” the bank said in a regulatory filing.
Bank’s provisioning towards bad loans and contingencies rose to Rs 813.58 crore for fourth quarter as against Rs 562.57 crore a year ago.
Asset quality slipped further with gross non-performing assets (NPAs) or bad loans increasing to 6.66 per cent of gross advances as of March from 4.40 per cent a year ago.
Net NPAs grew to 4.20 per cent of net advances in the January-March period as against 2.50 per cent in the same quarter last fiscal.
For the entire fiscal, Indian Bank’s net profit fell by 29.2 per cent to Rs 711.38 crore compared with Rs 1,005.17 crore in the preceding fiscal.
Total income for the fiscal increased to Rs 18,025.19 crore as against Rs 17,216.29 crore in 2014-15, the bank said.
The bank has recommended a final dividend of Rs 1.50 per equity share for 2015-16.
Indian Bank shares closed 4.37 per cent down at Rs 89.70 on BSE from the earlier close.