Indian Bank net profit up 19% at Rs 405 crore

Board deferred plans to raise funds

Indian Bank has posted a growth of 18.5 per cent in net profit at Rs 405.01 crore during the quarter ended September 30, 2016, as compared to Rs 341.92 crore during the same quarter of previous fiscal year. The Board of Directors of the Bank has today deferred a proposal to raise further funds.

The total income grew from Rs 4,579.01 crore during the quarter, as against Rs 4,551.26 crore during the same quarter of previous fiscal year, registering a marginal increase.

The percentage of gross non-performing assets (NPAs) has increased to 7.28% at Rs 9,192.07 crore during the quarter as compared to 4.61%, which is Rs 5,772.77 crore during the same quarter of last year.

The net NPA has grown to Rs 5,656.96 crore (7.28%) as compared to Rs 3,187.53 crore (2.60%) posted during the corresponding quarter of previouis fiscal year.

During the quarter, the Bank has assigned Rs 23.77 crore of non-performing financial assets to asset reconstruction company for a consideration of Rs 17.05 crore.

The Board has deferred the proposal to raise funds, it added.

It may be noted that in August 2, 2016 the Board has approved the Bank to raise Basel III compliant AT 1 and Tier 2 Bonds upto Rs 1000 crore in one or more tranches in the current or subsequent years based on the requirement.