Indian Bank has reported about 59 per cent drop in its standalone net profit for the fourth quarter ended March 31, 2018 at ₹ 131.98 crore against ₹ 319.70 crore in the corresponding quarter the previous year due to higher provisioning.
Briefing reporters, Kishor Kharat, managing director and CEO, Indian Bank, said the drop in profit was due to increase in provisioning coverage from 59 per cent to 65 per cent.
Pressures in earnings from bond market also had an impact, he added.
During the period under review, the bank reported total income of ₹ 4,954.20 crore against₹ 4,601.89 crore.
“Net interest margin grew by 2.84 per cent globally and our aim is to touch 3 per cent,” he said.
At the same time, net interest income grew by 18.25 per cent.
Mr. Kharat said that the bank was very much on the path of doubling its business in five years. The bank had set a business target of ₹ 3.6 lakh crore for 2017-18. It, however, closed at₹ 3.71 lakh crore, he added.
On the stressed asset, he said that the bank had referred 41 cases to National Company Law Tribunal amounting to ₹ 5,480 crore. "We are hopeful of recovering ₹ 2,000 crore and the balance soon."
The gross non-performing asset as a percentage dropped to 7.37 per cent from 7.47 per cent and the net NPA stood at 3.81 per cent (4.39 per cent).
The capital adequacy ratio stood at 12.55 per cent.
The bank declared a dividend of 60 per cent for FY18.
