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KOLKATA: State-owned has reported Rs 1011 crore net profit for the March quarter against Rs 3259 crore loss in the year ago period, riding on sharp rise in both core and other income, and fall in provisions.
The bank's net interest margin, a key profitability parameter, improved to 2.75 per cent for the quarter under review from 2.5 per cent in the year ago period. NIM was higher at 2.8 per cent for the December quarter.
Its gross non-performing assets ratio improved to 8.93 per cent from 9.39 per cent a year ago. Gross NPA was lower at 7.46 per cent as of December 31, 2020 on account of the Supreme Court approved delay in NPA recognition.
The lender is eyeing about Rs 15,000 crore of recovery this fiscal while expecting fresh slippages from the MSME, agriculture and corporate sectors on account of the second wave of the pandemic.
The corporate credit demand is still not visible with no fresh capital investment proposals, managing director LV Prabhakar said.
The bank's advances grew 3.68 per cent year-on-year to Rs 6.75 lakh crore while corporate loan book shrunk 4.64 per cent to Rs 2.95 lakh crore.
Its operating profit jumped nearly three times at Rs 5703 crore for the quarter under review from Rs 2041 crore in the year ago period. Interest income rose 35 per cent at Rs 16,316 crore from Rs 12047 crore while other income more than doubled at Rs 5207 crore against Rs 2175 crore over the same period. Provisions were lower at Rs 4134 crore against Rs 5375 crore.
The bank will soon hold another board meeting to finalise a business plan and the capital requirement for the year. Last year it raised about Rs 2,000 crore by selling shares to institutional investors and another Rs 2900 crore through additional tier (AT-1) bonds. Its capital adequacy ratio was at 13.2 per cent at the end of March.
The bank's net interest margin, a key profitability parameter, improved to 2.75 per cent for the quarter under review from 2.5 per cent in the year ago period. NIM was higher at 2.8 per cent for the December quarter.
Its gross non-performing assets ratio improved to 8.93 per cent from 9.39 per cent a year ago. Gross NPA was lower at 7.46 per cent as of December 31, 2020 on account of the Supreme Court approved delay in NPA recognition.
The lender is eyeing about Rs 15,000 crore of recovery this fiscal while expecting fresh slippages from the MSME, agriculture and corporate sectors on account of the second wave of the pandemic.
The corporate credit demand is still not visible with no fresh capital investment proposals, managing director LV Prabhakar said.
The bank's advances grew 3.68 per cent year-on-year to Rs 6.75 lakh crore while corporate loan book shrunk 4.64 per cent to Rs 2.95 lakh crore.
Its operating profit jumped nearly three times at Rs 5703 crore for the quarter under review from Rs 2041 crore in the year ago period. Interest income rose 35 per cent at Rs 16,316 crore from Rs 12047 crore while other income more than doubled at Rs 5207 crore against Rs 2175 crore over the same period. Provisions were lower at Rs 4134 crore against Rs 5375 crore.
The bank will soon hold another board meeting to finalise a business plan and the capital requirement for the year. Last year it raised about Rs 2,000 crore by selling shares to institutional investors and another Rs 2900 crore through additional tier (AT-1) bonds. Its capital adequacy ratio was at 13.2 per cent at the end of March.
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