State-run Indian Bank today reported 59 percent
decline in net profit to Rs 131.98 crore for the quarter ended March 31, as
provisions for bad loans nearly tripled. The bank had reported a profit of Rs
319.70 crore in the same period of 2016-17.
Total income
during the quarter however rose to Rs 4,954.20 crore, as against Rs 4,601.89
crore in the same period a year ago, Indian Bank said in a regulatory filing. Although the
gross non-performing assets (NPAs) during the quarter declined marginally to
7.37 percent from 7.47 percent, the provisions for bad loans increased
three-fold.
In absolute
terms, gross NPAs were at Rs 11,990.14 crore, up from Rs 9,865.13 crore in the
year-ago period. The bank made
provisions and contingencies of Rs 1,546.33 crore for the quarter, more than
double from Rs 806.91 crore in the year-ago period.
Provisioning for bad
loans nearly tripled to Rs 1,772.03 crore during the quarter as against Rs
608.42 crore earlier.Net NPAs also declined
to 3.81 percent as against 4.39 percent a year ago.
Despite decline in
profit, the bank's board recommended a dividend of Rs 6 per share of face value
Rs 10 per, that is 60 percent to the shareholders. For the entire
2017-18, the bank's profit declined 11 percent to Rs 1,258.99 crore as against
Rs 1,405,67 crore in the previous year.The
total income also declined to Rs 19,519.48 crore, as against Rs 19,531.91 crore
in 2016-17.
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