Indian Bank posts net loss, but income up 11.7%

The bank had registered a net profit of Rs 131.98 crore during the March quarter of the previous fiscal.

Published: 15th May 2019 02:22 AM  |   Last Updated: 15th May 2019 09:55 AM   |  A+A-

Padmaja Chunduru, MD & CEO, Indian Bank, announces the fourth quarter results of the bank at a press conference in Tamil Nadu on Tuesday | D SAMPATHKUMAR

By Express News Service

CHENNAI: Indian Bank on Tuesday announced a net loss of Rs 189.77 crore for the January-March quarter (Q4) of financial year 2018-19, owing mainly to substantial provisioning for accounts of beleaguered IL&FS. The bank had registered a net profit of Rs 131.98 crore during the March quarter of the previous fiscal.

However, the total income of the bank during the quarter rose to Rs 5,537.47 crore in the fourth quarter of FY19, from Rs 4,954.21 crore in the corresponding period a year ago.
Announcing the results, Indian Bank managing director and chief executive officer Padmaja Chunduru attributed the fourth quarter loss to provisioning of over Rs 220 crore towards exposure to crisis-ridden 

IL&FS and another firm. Adding to this was the depreciation on investments, she said.
Chunduru, however, expressed confidence that the bank will be in profit mode soon. “I am satisfied with the growth of the bank. It is growing well in all sectors and we will see a positive growth in next quarter results. We are poised for a better future,” she said. 

For the full financial year 2018-19, Indian Bank posted a net profit of Rs 321.95 crore, which was substantially lower than the Rs 1,258.99 crore it saw in the previous fiscal. According to senior officials of the bank, “The net profit in the previous fiscal year was the result of recoveries of two big accounts as well as sale of assets worth Rs 500 crore.”

The bank’s total income, however, went up 8 per cent at Rs 21,068 in FY19. The interest income also went up by 12 per cent at Rs 19,185 crore. On the bank’s asset quality, the gross non-performing asset (NPAs) has reduced to 7.11 per cent of the gross advances by the end of the fiscal 2018-19, against 7.37 per cent by the end of FY18. Net NPAs came down to 3.75 per cent, against 3.81 per cent.
Highlighting the bank’s achievements, Chunduru said that Indian Bank was the top performer when it comes to multiple scheme payments under the Public Financial Management System. It is the highest issuer of Rupay Platinum cards, she said.

Going forward, Chunduru said, specialised branches for corporate credit will be set up, in order to streamline the functioning of the bank and make it more efficient. Further, Indian Bank will strengthen its credit-monitoring department for RAM (Retail, Agriculture and MSME) sector, she said.

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