CHENNAI: There has been a 66 per cent dip in Indian Bank’s net profit at Rs 150 crore for the second quarter, which ended on September 30, due to an increase in bad loans, said Padmaja Chunduru, its managing director and CEO, on Friday. The bank’s net profit in the corresponding July-September quarter of 2017-18 was Rs 451.5 crore.
However, the total income of the bank increased to Rs 5,129.16 crore for the September quarter this year, from Rs 4,874.16 crore in the same period of the previous fiscal, Padmaja added while reading out the bank’s quarterly financial results.
The bank saw a total business growth of 14.28 per cent which amounted to a profit of around four lakh crores. “Due to a decline in the sale of investments operating profit decreased from Rs 1376 crores to Rs 1191 crores. But apart from that, our profits grew up 6.5 per cent,” added Padmaja, who took charge as CEO on September 21.
While the bank performed well in terms of interest income, net interest income and margin income which saw an increase, the bank’s provisioning for bad loans and contingencies was raised to Rs 1,004.3 crore for the July-September quarter, up from Rs 744.55 crore for the same period a year earlier. Provisioning for bad loans alone stood at Rs 752.47 crore, up from Rs 633.36 crore as on September 30, 2017.
Indian Bank’s mobile banking transactions grew by 78 per cent, while internet banking grew by 8.17 per cent said an official release.
During the half year, the bank has appropriated the recovery of Rs 94.61 crore in a fully provided NPA account in accordance with the resolution plan approved by the National Company Law Tribunal (NCLT). Based on a legal opinion obtained and pending issuance of a final order on the appeal filed, the amount recovered has been considered as part of NPA recovery, it said.