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Indian Bank has reported 66.7 per cent dip in its net profit at Rs 150.1 crore for the second quarter ended September 30, 2018 due to increase in bad loans. Net profit in the corresponding July-September quarter of 2017-18 stood at Rs 451.5 crore.
According to a regulatory filing, total income of the bank, however, increased to Rs 5,129.16 crore from Rs 4,874.16 crore. Asset quality deteriorated with gross non-performing assets (NPAs) rising up to 7.16 per cent of gross advances as on end-September 2018 against 6.67 per cent by September 2017.
Net NPAs, too increased to 4.23 per cent of net advances at the end of second quarter of this fiscal from 3.41 per cent in the year-ago period. Provisioning for bad loans and contingencies was raised to Rs 1,004.3 crore for the July-September quarter from Rs 744.55 crore in the same period a year earlier.
Provisioning for bad loans alone stood at Rs 752.47 crore (Rs 633.36 crore). Provision coverage ratio stood at 60.82 per cent as on September 30, 2018.
For the half-year period, 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. Based on a legal opinion obtained and pending issuance of final order on the appeal filed, the amount recovered has been considered as part of NPA recovery.
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