Indian Bank's asset quality remained stable in the third quarter and provisions declined, bucking the trend seen in state-owned lenders' earnings.
The lender's gross bad loan ratio stood flat at 6.27 percent sequentially and provisions for bad loans declined to Rs 385 crore from Rs 633 crore in the previous quarter. The bank aims to reduce gross non-performing assets to less than 6 percent by March 2018, Kishor Kharat, managing director of Indian Bank told BloombergQuint in an interview.
The bank's restructured assets portfolio also came down to around Rs 4,000 crore from Rs 9,000 crore earlier, said Kharat, adding that the management doesn't foresee too much pressure on the restructured assets in the road ahead.
The bank made additional provisions of Rs 238 crore and Rs 30 crore in the third quarter towards stressed assets in the Reserve Bank of India's two lists respectively, currently undergoing insolvency proceedings under the NCLT.
The lender's profit fell 18.9 percent to Rs 303 crore on a yearly basis, Indian Bank said in a stock exchange filing. Net interest income, or the core income from operations, rose 30.2 percent year-on-year to Rs 1,623 crore.
Key Financial Highlights:
- Other income down 8.5 percent
- Operating profit up 18.4 percent
- Capital adequacy ratio at 12.44 percent
- Provisions coverage ratio at 64.73 percent
- Overall growth in advances at 21.66 percent
Also Read: SBI Posts Surprise Loss As Provisions Surge, Treasury Income Falls
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