Indian Bank has reported a 35 per cent fall in its net profit at Rs.207 crore for the first quarter ended June 30, 2014 when compared with Rs.317 crore in the same period previous fiscal.
The fall in net profit was mainly due to lower operating profit on account of drop in other income. In Q1 of 2013-14, there was an exceptional profit of Rs.314 crore on account of trading in securities as compared to Rs.36 crore in Q1 of this fiscal.
Setting aside the treasury profit, the net profit in the Q1 of present fiscal from core operations is higher by Rs.168 crore, said T M Bhasin, Chairman and Managing Director of the Bank.
Its operating profit before provisions and contingencies stood at Rs.637 crore (Rs.859 crore). in Q1 of 2013-14.
Net interest income fell marginally to Rs.1,072 crore (Rs 1,098 crore). Other income (non-interest income) saw a decline of 59 per cent at Rs.215 crore (Rs.528 crore).
During the Q1 of this fiscal, bank’s asset quality saw some stress with gross non-performing assets (NPA) increasing 60 basis points to 4.01 per cent, and the net NPA rising 17 basis points to 2.48 per cent.
