Indian Bank Q2 Net rises 17.5% to Rs 369 crore

Indian Bank today reported a 17.5 per cent growth in net profit at Rs 369.31 crore for the second quarter ended September 30, 2015.
The Chennai-headquartered bank had reported a net profit of Rs 314.33 crore during the same period of the previous year, Indian Bank said in a BSE filing.
For the six-month period ending September 30, net profit jumped to Rs 584.59 crore from Rs 521.49 crore registered during the corresponding six months last year.
Total income of the bank also surged to Rs 4,578.65 crore for the quarter under review from Rs 4,340.32 crore registered during the year-ago period.

For the half-year period ended September 30, total income of the bank increased to Rs 9,073.19 crore from Rs 8,484.33 crore recorded during the same period of the previous year.
On asset front, the slippages were marginal with gross non-performing assets (NPAs) standing 4.61 per cent of gross advances as of September 2015, as against 4.21 per cent in the year-ago period.

Likewise, net NPAs or bad loans were 2.60 per cent of net advances during the quarter under review, up from 2.55 per cent in the same quarter of the previous fiscal.
Provisions and contingencies of Rs 137.08 crore were marked towards these for the second quarter of current fiscal, down from Rs 286.63 crore in the year-ago period.

"During the quarter, non-performing financial asset aggregating to Rs 30.07 crore (net of provisions) were assigned to Asset Reconstruction Companies for a consideration of Rs 31.51 crore," it said in the BSE filing.
Further, the bank also said that during the quarter ended September, it has changed the basis of computation of provision of diminution in fair value for restructured accounts. Consequent to this change, there is a net write back of provision amounting to Rs 152 crore during the quarter.
The bank shares were trading at Rs 135.40 apiece, up by 8.23 per cent in the afternoon trade on BSE.