New Delhi: State-run Indian Bank today reported 59 per cent decline in net profit to Rs 131.98 crore for the quarter ended March 31, as provisions for bad loans nearly tripled.
The bank had reported a profit of Rs 319.70 crore in the same period of 2016-17.
Total income during the quarter however rose to Rs 4,954.20 crore, as against Rs 4,601.89 crore in the same period a year ago, Indian Bank said in a regulatory filing.
Although the gross non-performing assets (NPAs) during the quarter declined marginally to 7.37 per cent from 7.47 per cent, the provisions for bad loans increased three-fold.
In absolute terms, gross NPAs were at Rs 11,990.14 crore, up from Rs 9,865.13 crore in the year-ago period.
The bank made provisions and contingencies of Rs 1,546.33 crore for the quarter, more than double from Rs 806.91 crore in the year-ago period.
Provisioning for bad loans nearly tripled to Rs 1,772.03 crore during the quarter as against Rs 608.42 crore earlier. Net NPAs also declined to 3.81 per cent as against 4.39 per cent a year ago.
Despite decline in profit, the bank's board recommended a dividend of Rs 6 per share of face value Rs 10 per, that is 60 per cent to the shareholders.
For the entire 2017-18, the bank's profit declined 11 per cent to Rs 1,258.99 crore as against Rs 1,405,67 crore in the previous year. The total income also declined to Rs 19,519.48 crore, as against Rs 19,531.91 crore in 2016-17.
