Indian Bank Q1 net up 4% at Rs 215 crore

The rise in profit was attributed to provisioning towards wage revision and unhedged foreign currency exposure

Indian Bank today reported a 4 per cent increase in its net profit at Rs 215.28 crore for the first quarter ended June 30.

The bank's net profit in the corresponding (April-June) quarter of previous fiscal stood at Rs 207.16 crore.

The small rise in profit was attributed to provisioning towards wage revision and unhedged foreign currency exposure.

"Provision of Rs 83.13 crore has been made during the quarter towards balance in arrears for wage revision, which is effective from November 1, 2012.

"The aggregate liability provided as on June 30, 2015 is Rs 373.13 crore," the bank said in a filing to BSE.

Also, based on available financial statements and the declaration from borrowers, the bank has estimated the liability and holds a provision of Rs 20.14 crore and allocated capital of Rs 49.42 crore as on June 30, on unhedged foreign currency exposure to their constituents, it said.

Total income of the bank increased by 8.5 per cent to Rs Rs 4,494.54 crore for the reported quarter compared with Rs 4,144.01 crore in the same quarter last fiscal.

On provisioning towards bad loans and contingencies, the bank set aside a higher share of Rs 408.07 crore in the first quarter of FY16, as compared to Rs 325.62 crore earmarked during the same quarter in the previous fiscal.

Bank's asset quality was retained at almost previous level with net non-performing assets (NPAs) at 2.62 per cent of net advances in Q1-FY16, as against 2.48 per cent a year ago.

Gross NPAs too were restricted at 4.65 per cent of gross advances during the quarter under review, a little higher than 4.01 per cent a year ago.

Indian Bank shares traded at Rs 132.60 apiece on BSE, down 0.53 per cent from previous close.