State-owned Indian Bank has reported 62.3 per cent jump in net profit at Rs 247 crore for the quarter ending December of the current fiscal, its MD and CEO Padmaja Chunduru said on Friday.
The Chennai-headquartered bank net profit during the same period last year was 152 crore. “Despite a big account turning non-performing asset (NPA), the earnings have been good. There has been secular growth across all verticals and results are according to our expectations,” said Chunduru.
The bank’s NPAs percentage has reduced to 3.5 per cent during the quarter from 4.42 per cent in the same period last year. Similarly, the percentage of gross NPA was lower at 7.2 per cent against 7.46 per cent as on December 2018.
“The slippages were contained through close and rigorous follow up which lent stability to the asset quality metrics. Retail assets witnessed growth across all segments like retail (22 per cent), agriculture (13 per cent) and MSME (19 per cent),” said Chunduru, adding, “The bank has delivered satisfying results with business and balance sheet crossing milestone figure of Rs 4.5 trillion and Rs 3 trillion respectively.”
The bank’s total income for December quarter has also increased by 23 per cent at Rs 6,506 crore against Rs 5,269 crore last December. The recovery of bad debts has improved by 13 per cent in the quarter.
It posted a growth of 74.8 per cent in Profit Before Tax at Rs 390.35 crore during the third quarter of FY19, as compared to Rs 223.36 crore during the same period last year. Speaking about the amalgamation of Allahabad Bank with Indian Bank, she said “This amalgamation would be a seamless and most successful merger,” adding the integration will result in good synergy for the bank.