Indian Bank's Q3 net drops 20% at Rs 264.50 cr

Total income stands at Rs 4,112.33 cr during the quarter as compared to Rs 3,786.68 cr last year

Indian bank has posted a drop of 20% in net profit at Rs 264.50 crore during the quarter ended December 31, 2013 as against Rs 330.58 crore for the same period of previous fiscal year.

T M Bhasin, chairman and managing director, Indian Bank said the drop was mainly due to provision towards pension fund during the third quarter at Rs 123 crore and towards gratuity was Rs 41 crore.

Total income of the Bank stood at Rs 4,112.33 crore during the third quarter of current fiscal year as compared to Rs 3,786.68 crore for the corresponding period of last year.

The gross NPA stood at 3.42% at Rs 3834.78 crore for the quarter compared to 3.18% at Rs 3180.12 crore for same period of previous year.

The net NPA stood at 2.25% at Rs 2483.60 crore for the quarter ended December 31, 2013, while it was 2.17 pe cent at Rs 2141.86 crore for the same period of last year.

Provision coverage of the Bank was 57.99%.

?During the quarter Non-Performing Financial Assets aggregating to Rs 389.97 crore (net of provisions) were assigned to Asset Reconstruction Companies for an aggregate consideration of Rs 675.71 crore.

The assets include accounts which are below Rs 10 lakh stood at around Rs 617.89 crore, while SME NPA which was above Rs 10 lakh less than Rs one crore was at Rs 189 crore.

Bhasin said the Bank has identified 19 large value accounts, above Rs 5 crore, to sell it to ARCs. Total value of these accounts would be around Rs 300 crore.

In line with the guidelines of Reserve Bank of India, surplus of Rs 285.74 crore arising out of this sale is not recognised in Profit and Loss Account.