The public sector Indian Bank today reported a decline of 18.8 per cent in net profits at Rs 303.06 crore for the third quarter ending December 31, 2017 due to higher operating expenses and provisioning.
Declaring the results, Managing Director and CEO of Indian Bank, Kishor Kharat said the decline in the net profits was on account of mark to market depreciation on investments of about Rs 407 crore, due to rise in bond yields and other provisions.
"Bank has kept the consistency of giving good results particularly quarter on quarter basis.. This quarter too, the Bank has kept up the good performance," he told reporters.
He said the net profits for the nine month period ending December 31, 2017 increased to Rs 1,127.01 crore from Rs 1,085.97 crore registered during corresponding period of last year.
Total income of the bank for the October-December 31, 2017 quarter grew to Rs 4,903.07 crore, from Rs 4,557.25 crore registered during year ago period.
For the nine month period ending December 31, 2017 total income of the bank surged to Rs 14,565.27 crore from Rs 13,649.22 crore registered during year ago period.
Responding to a query, Kharat said, the bank was hoping that the issue of mark to market depreciation on investments would be a one quarter issue only and the bank has to adopt a wait and watch approach on it.
On the asset quality of the bank, he said, the gross non-performing assets fell to 6.27 per cent of the gross advances by December 31, 2017, as against 7.69 per cent registered during same period of last year.
Net NPA of the bank came down to 3.30 per cent as of net advances as on December 31, 2017 from 4.76 per cent registered during same period of last year.
"This is one of the best numbers reported among public sector banks", he said adding stressed advances was reduced to 8.88 per cent as on December 31, 2017 from 12.41 per cent registered same period of last year.
On the capital adequacy ratio, Kharat said it was 12.44 per cent as on December 31, 2017.
"It is way above the regulatory requirement of 10.25 per cent," he said.
Kharat said the total balance sheet size grew by 15.66 per cent and was at Rs 2,44,105 crore as of December 31, 2017 from Rs 2,11,057 crore registered during corresponding period of last year.
The best part was the net interest income which surged by 30.17 per cent, to Rs 1,622.70 crore for the quarter ending December 31, 2017, from Rs 1,246.57 crore registered for the quarter year ago period, he added.
For the nine month period ending December 31, 2017, he said the NIM increased by 22.9 per cent to Rs 4,625.86 crore as against Rs 3,761.15 crore registered during corresponding period of last year.
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