Provisioning for IL&FS loans and other sticky assets has hit the bottom line of Chennai-based Indian Bank with the public sector lender on Friday registering a 49.8% decline in its net profit at `152 crore for the third quarter of FY 19 compared to `303 crore in the same quarter previous fiscal. \u201cThe only factor affecting the profit was the additional NPA that have been recorded in this quarter. The main reason for this NPA is the IL&FS exposure. The other sectors have shown a better performance, but it has been almost overtaken and masked by this exposure,\u201d Padmaja Chunduru, MD and CEO of Indian Bank, told reporters. Detailing about the IL&FS exposure, she said a `664-crore IL&FS loan portion \u2013 though not entirely non performing \u2013 facing some issues because it is under consideration of the government and the RBI. Due to an NCLT order, all the cash flows of these companies are frozen in the escrow accounts and a decision has to be taken. \u201cThese assets would take some time for resolution. That has impacted almost all the ratios. In the previous quarter, IL&FS was not much on the agenda,\u201d she said. The standard assets are earning assets and they have escrow accounts where the funds are being deposited. \u201cWe will have to wait and see. I hope given the developments that are happening we are expecting some resolution will be reached on IL&FS exposure,\u201d she said. The bank, which had seen a 67% drop in net profit in Q2 as well, reported that its asset quality worsened, with gross non-performing assets (NPAs) rising to 7.46% by the end of December 31, 2018 compared to 6.27% by end of December 2017. Net NPAs increased to 4.42% from 3.30%, during the quarter. In absolute terms, the gross NPAs were at `13,198.40 crore during the quarter against `9,595.15 crore in the corresponding period of the previous fiscal while net NPAs were at `7,571.07 crore, against `4,898.60 crore. Provision coverage ratio was at 60.91%. Interest income grew 10.8%, up from `4,354 crore, to `4,824 crore. Net interest income grew by 5.8% from `1,623 crore to `1,717 crore. The bank\u2019s net interest margin improved by 3 bps from 2.85% to 2.88%. She said bank\u2019s CASA increased by 6.85% y-o-y from `73,835 crore to `7,8890 crore. RAM sector has grown by `17,185 crore with retail clocking 17% growth, agriculture 26.3% and MSME 18.7%. \u201cCurrently, RAM sector forms 58.7% of the total domestic advances of the bank while corporate advances constitute around 40%,\u201d Chunduru said. The capital adequacy ratio (CAR) as per Basel-III guidelines was at 12.67% of which total tier-1 was at 11.24% and tier-II was at 1.43%. The net-worth increased by 5.15% to `16,470 crore. She said that digital channels have grown significantly with mobile banking transactions growing by 247%. Internet banking transactions touched 6.74 Mio growing by 11.6% from 6.04 Mio. Volume of POS transactions grew by 47.55% from 23.51 lakh to 34.69 lakh. The global business have crossed the milestone figure of `4 lakh crore to reach `4,02,711 crore with a growth of 11.97%. The global deposits grew by 9.35% to touch `2,25,847 crore from `2,06,533 crore, while global advances registered a growth of 15.51% to reach `1,76,864 crore from `1,53,120 crore.