Indian Bank on Monday reported a 7 per cent drop in its net profit at Rs. 271.28 crore for the January-March quarter of 2013-14 due to higher provisions for bad assets.
The PSU bank had reported a net profit of Rs. 292.12 crore in the same period last year.
“We have made larger provisions for NPA and investments,” Indian Bank Chairman and Managing Director T.M. Bhasin told reporters here when asked about the reason for fall in net profit for the quarter under review.
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Total provisions, including for NPA and bad debts written off and deprecation on investments stood at Rs. 1,741.65 crore on year ended March 31, 2014, as against Rs. 1,480.21 crore for the same period last year.
Total income of the bank increased to Rs. 4,234.83 crore from Rs. 4,022.46 crore in January-March 2014.
For 2013-14, the bank recorded 27 per cent decline in profit to Rs. 1,158.94 crore from Rs. 1,581.13 crore in the previous financial year.
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Total income in 2013-14 rose to Rs. 16,620.88 crore from Rs. 15,179.41 crore in 2012-l3.
The bank’s gross non-performing assets (NPAs), or bad loans, as a percentage of total advances, rose to 3.67 per cent from 3.33 per cent in the same quarter a year ago.
Net NPAs stood at 2.26 per cent at the end of March 2013.
For the current fiscal, focus areas included reduction in NPA loans and increase in profitability, Mr. Bhasin said while releasing Indian Bank’s FY 2013-14 results.
However, the Chennai headquartered bank had made a ‘robust’ NPA recovery of Rs. 625 crore and the net NPA to Net Advances ratio ‘has been maintained at 2.26 per cent,’ he said.
The global business recorded a year-on-year growth of 15.1 per cent at Rs. 2,86,633 crore even as total deposits had exceeded Rs. 1.62 lakh crore, showing a 14.3 per cent growth, he said.
On future plans, he said around 250 branches would be opened this year, taking the total number to 2,500.
Further, the Board of Directors has approved a final equity dividend of 17 per cent, he added.