Public sector lender Indian Bank has posted a 44% decline in its standalone first-quarter net profit at ₹209.31 crore against ₹372.41 crore in the year-earlier period, mainly on account of higher provisioning.
Total income for the quarter rose year-on-year to ₹5,131.97 crore from ₹4,788.04 crore. Interest income increased to ₹4,692.17 crore from ₹4,135.97 crore, the bank said in a statement on Wednesday.
Gross NPAs rise
Gross non-performing assets (NPAs) rose to ₹11,827.60 crore from ₹9,653.02 crore and net NPAs to ₹5,998.62 crore from ₹5,238.61 crore.
Provisions and contingencies for the quarter ended June were ₹1,029.56 crore against ₹715.56 crore, the year earlier.
Non-performing loan provision coverage ratio was 64.38%.
In respect of select borrowal account covered under the provisions of Insolvency and Bankruptcy Code, the bank has made a provision of ₹186 crore.
During the quarter, Indian Bank recovered ₹94.61 crore in a fully provided NPA account.
With regard to mark-to-market (MTM) losses on investment held in ‘available for sale’ and ‘held for trading’ for four quarters starting December 31, 2017, the bank has provided ₹362.75 crore for the first quarter of FY19.
