Chennai-based public sector lender Indian Bank has reported a 84.75% drop in net profit at Rs 42.30 crore for the third quarter as compared to Rs 277.52 crore in the same quarter last financial year.
The bank has attributed the reduction in net profit to higher provisioning towards bad assets. The total income of the bank for the quarter stood at Rs 4,438.40 crore as compared to Rs 4321.46 crore. Speaking to media persons after releasing the earning performance, here on Thursday, Mahesh Kumar Jain, managing director & CEO, Indian Bank said higher provisioning has taken a toll on the bottom-line of the bank.
“We have provisioned close to Rs 200 crore more this quarter than Q2 and this coupled with fresh slippage to the tune of Rs 1738 crore to bad assets, had resulted in drop in net profit. The bank had provisioned Rs 718.05 crore in Q3, towards sticky assets,” Jain said.