Indian Bank net profit up 3% to Rs 1213 crore in Q1

Kolkata: State-owned reported a mere 3% rise in June quarter net profit at Rs 1213.4 crore against Rs 1181.7 crore in the year-ago period, largely due to lower provisions. Total income expanded marginally due to lower other income.

The lender's total income for the period was at Rs 11,758 crore against Rs 11,444 crore. Net interest income rose 13% at Rs 4,534 crore while other income was 12% lower at Rs 1,605 crore.

The mark-to-market losses were at Rs 236 crore as compared to Rs 56 crore loss in the year ago period and fall in income from sale of investment to Rs 105 crore from Rs 615 crore were the main reasons behind the muted rise in profit, Managing Director Shanti Lal Jain told ET. "We are happy that our core income could offset the treasury losses," he said.

The Indian Bank's operating profit stood at Rs 3,564.4 crore, representing a 4% rise over Rs 3,415.9 crore. It set aside Rs 2,219 crore as provisions and contingencies, which were 13% lower than what it did in the year-ago period. However, the bank made about 15% higher provisions at Rs 2,002 crore to cover asset quality risk.

Its gross non-performing assets ratio fell to 8.13% at the end of June from 8.47% three months prior to that. Net NPA was at 2.12% against 2.27% over the same period.

The bank's advance rose 9% year-on-year to Rs 4.25 lakh crore with retail, MSME and farm loans contributing 61% of it.