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Indian Bank has reported a drop in its profit and asset quality during the January-March 2016 quarter over the comparable quarter of the previous year.
The Chennai-headquartered bank reported a 59 per cent drop in its net profit at ₹84 crore for the quarter ended March 31, 2016 compared with ₹206 crore in the year-ago period, due to higher provisioning for non-performing assets (NPAs) amid marginal rise in operating profit during the fourth quarter. Its operating profit grew to ₹827 crore (₹817 crore).
However, its numbers were better compared to the third quarter net profit of ₹42 crore and operating profit of ₹761 crore.
Provisions and contingencies stood at ₹814 crore as against ₹563 crore in the year-ago period. During Q4 of 2015-16, the bank had slippages of ₹3,386 crore compared with ₹1,738 crore in the preceding quarter.
“We have cleaned up the balance sheet over and above the AQR (asset quality review) requirement and it would be business as usual for our bank.
“We will position the bank as a retail and mid-segment bank, going forward,” said Mahesh Kumar Jain, Managing Director & CEO. Indian Bank’s net interest income (the difference between interest earned and interest expended) improved marginally to ₹1,135 crore compared to ₹1,108 crore in the year-ago period. Interest income fell to ₹3,983 crore from ₹3,956 crore. Other income rose 16 per cent to ₹529 crore as against ₹454 crore.
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