Indian Bank on Monday reported a fall of nearly 19% in net profit at Rs303.06 crore for the third quarter ended 31 December, due to higher operating expenses, provisioning and contingency reserve.
The public sector bank had registered a net profit of Rs373.48 crore in the corresponding October-December period of previous fiscal.
Total income was up at Rs4,903.07 crore from Rs4,557.25 crore in the year-ago period. Operating expenses of the bank rose to Rs962.33 crore for the quarter from Rs825.09 crore in the same quarter previous year.
The lender improved on its asset quality, with gross non-performing assets (NPAs) falling to 6.27% of the gross advances by the end of 31 December, 2017 as against 7.69% by end-December 2016. Net NPAs or bad loans also came down to 3.30% of the net advances against 4.76%. Gross NPAs were Rs9,595.15 crore as on 31 December, 2017 against Rs9,675.05 crore.
Net NPAs were Rs4,898.60 crore, as against Rs5,798.34 crore. Provisions and contingencies were raised to Rs918.12 crore for third quarter of 2017-18 against Rs540.29 crore for the same quarter of previous fiscal, the bank said in a regulatory filing.
However, provisioning for bad loans fell to Rs385.49 crore for the third quarter of 2017-18 against Rs546.84 crore in the year-ago period. Non-performing loan provision coverage ratio stood at 64.73% as on 31 December, 2017.
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