Indian Bank has reported a 24 per cent drop in its net profit at Rs.206 crore for the quarter ended March 31, 2015, when compared with Rs.271 crore in the year-ago period. Higher provisioning had an impact on the profitability. Also, the quarter had an income tax refund of Rs.40 crore while the corresponding quarter had Rs.110 crore.
But operating profit was higher by 16 per cent at Rs.817 crore (Rs.703 crore).
Gross NPA ratio at 4.40 per cent was down on a sequential basis (from 4.52 per cent), but up on a year-on-year basis (from 3.67 per cent). Net NPA stood at 2.50 per cent against 2.74 per cent in Q4 of previous fiscal. For the full year ended March 31, 2015, the net profit declined by 13 per cent to Rs.1,005 crore when compared with Rs.1,159 crore in 2013-14.
“NPA recovery was robust at Rs.848 crore against Rs.627 crore. Our provision coverage ratio was also up. We shed high cost deposits to the tune of Rs.8,820 crore,” T. M. Bhasin, Managing Director and CEO, said.
In 2014-15, NPA provisions stood at Rs.1,289 crore, up from Rs.1,155 crore. Total income was up at Rs.17,216 crore (Rs.16,621 crore). Gross advances were up at Rs.1.29 lakh crore (Rs. 1.24 lakh crore). The board proposed a dividend of 42 per cent.
The bank has launched three new products — e-purse debit cards, net banking, the green way and IB smart remote. Also, it launched an exclusive lounge for the high networth customers.
