Indian Bank’s net profits rose by 21 per cent to Rs 372 crore in the first quarter ended June 2017, backed by robust growth in other income.
The Chennai-based public sector bank had posted net profits of Rs 307 crore in April-June 2016.
Its net interest income, interest income minus interest expenses, rose by 18 per cent to Rs 1,460 crore in the first quarter of FY18 from Rs 1,237 crore in the year-ago quarter.
Other income, comprising fees, commissions, and treasury revenues, rose by 48 per cent to Rs 652 crore in April-June 2017 from Rs 441 crore in the first quarter of FY17.
Kishor Kharat, managing director and chief executive officer, told Business Standard the bank was looking to raise equity capital of around Rs 1,200 crore by the end of the current calendar year.
It may issue around 47.5 million shares as part of the offer. Its capital adequacy ratio (CAR) stood at 13.58 per cent.
Gross NPAs rose to 7.21 per cent at the end of June 2017 from 6.97 per cent in June 2016.
The net NPA position improved to 4.05 per cent from 4.48 per cent a year ago. He said NPAs were in control. Gross NPAs dropped to 7.21 per cent from 7.47 per cent in the previous quarter. By the end of the year, the bank wants to bring it to 5 per cent.
Its provisions for NPAs more than doubled to Rs 681 crore in the first quarter of FY18 from Rs 327 crore in the year-ago quarter.
The provision coverage ratio (PCR), indicating the strength of the balance sheet to absorb stress, stood at 61.65 per cent at the end of June 2017.
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