Indian Bank saw its net profit fall 38 per cent to Rs.306 crore for the second quarter ended September 30, 2013, from Rs.497 crore in the same period in the previous fiscal.
“During the second quarter of previous fiscal, there was Rs.314 crore profit on investments. But this time we have not liquidated any of our investments due to unfavourable market conditions. Hence, there was an impact on the net profit,” Chairman and Managing Director of the bank T. M. Bhasin said.
Operating profit stood at Rs.706 crore against Rs.908 crore a year-ago.
Total income was higher by 8 per cent at Rs.4,078 crore against Rs.3,774 crore, driven by 11 per cent growth in interest income at Rs.3,801 crore. Other income slipped to Rs.277 crore from Rs.363 crore.
Total business of the bank was up 16.1 per cent at Rs.263,758. Deposits saw a growth of 16.4 per cent at Rs.152,687 crore, while gross advances were up 15.8 per cent at Rs.111,071 crore.
The asset quality of the bank was under stress on a quarterly basis. Net NPAs rose 25 basis points sequentially (up 148 basis points on yearly basis) to 2.56 per cent while gross NPAs jumped 35 basis points quarter-on-quarter (up 170 basis points year-on-year) to 3.76 per cent.
Earlier, Mr. Bhasin announced the launch of seven technology-related products and services as part its customer-centric initiatives.
Punjab National Bank
Punjab National Bank has reported a 52.56 per cent drop in its net profit at Rs.505.49 crore for second quarter ended September 30, 2013, due to higher provisioning., against Rs.1,065.58 crore in the year-ago period. Depreciation on investment of Rs.443.10 crore and a provision of Rs.434 crore towards standard advances pulled down the net profit. The gross NPAs rose to 5.14 per cent from 4.66 per cen and the net NPAs to 3.07 per cent from 2.69 per cent.
UCO Bank
UCO Bank reported a near four-fold jump in its net profit at Rs.400 crore for the second quarter ended September 30, 2013, against Rs.103.70 crore in the corresponding period in the previous year. Total income increased to Rs.4,653.30 crore from Rs.4,408.55 crore. Gross NPAs rose to 5.32 per cent from 4.88 per cent. Interest income rose to Rs.4,444 crore from Rs.4,196 crore.
City Union Bank
City Union Bank has reported a 5 per cent rise in its net profit at Rs.84.35 crore in the second quarter ended September 30, 2013, against Rs.80.42 crore in the same period in the previous year. Total income rose by 18 per cent to Rs.702.14 crore from Rs.596.03 crore.
As on September 30, 2013, deposits registered a growth of 19 per cent at Rs.21,056 crore against Rs.17,689 crore as on September 30, 2012. Advances went up by 18 per cent to Rs.15,849 crore from Rs.13,437 crore. Addressing presspersons here on Friday, N. Kamakodi, Managing Director and CEO, said the focus was on the SME (small and medium enterprises) sector where the recovery was good. The net interest margin for the quarter stood at 3.51 per cent.
The bank set aside a higher amount of Rs.88.18 crore (Rs.27.88 crore) towards provisions and contingencies. Mr. Kamakodi said the bank had fully provided for depreciation on investments and losses arising out of shifting of SLR (statutory liquidity ratio) securities from available for sale (AFS) or held for trading (HFT) category to held to maturity (HTM) category during the quarter itself instead of distributing them to the next two quarters as permitted by the Reserve Bank of India.
