Indian Bank extends gain on healthy Q1 earnings

Q1 gross NPA was down to 1.66% from 2.03%, while net NPA declined to 1.04% from 1.33% at the end of the financial year 2011-12.

Indian Bank has moved higher by 4% to Rs 195, extending its previous day’s 2% gain, after reporting an improvement in assets quality for the first quarter ended June 2012, on quarter-on-quarter basis.

The gross NPA (non-performing assets) was down to 1.66% in Q1 FY13 from 2.03%, while net NPA declined to 1.04% from 1.33% at the end of the financial year 2011-12.

Meanwhile, the public sector bank has reported a 14% year-on-year growth in net profit at Rs 462 crore in June quarter, on back of higher interest income and good recovery system. Net interest income (NII) rose 10% to Rs 1,136 crore from Rs 1,030 crore a year ago.

The stock opened at Rs 189 and hit a high of Rs 197 on the National Stock Exchange. The trading volumes on the counter more than double, with a combined 443,920 shares have changed hands so far.