Indian Bank Q3 net tanks 85% at Rs 42 crore

Total income for the quarter under review rose to Rs 4,438 crore

Public sector Indian Bank today recorded a plunge of 84.75 per cent in net profit at Rs 42.30 crore for the third quarter ended December 31, 2015 on higher provisioning for bad loans.

The city-based bank had registered a net profit of Rs 277.52 crore in the corresponding period of the last fiscal, Indian Bank Managing Director and CEO Mahesh Kumar Jain said.

For the nine-month period ended December, the net profit stood at Rs 626.89 crore as against Rs 799.01 crore during the same period of the previous year.

Total income for the quarter under review rose to Rs 4,438.40 crore from Rs 4,321.46 crore registered during the year-ago period.

"The difference in net profits in third quarter was due to higher provisioning as there were fresh slippages for about Rs 400 crore during the quarter (ended December 31, 2015)", Jain told reporters.

Stating that the bank is taking a cautious approach on its performance, he said the total business touched Rs three lakh crore with a CAGR of 11.44 per cent.

The Board at its meeting has approved issue of 1,100 bonds and the bank would raise it when the market was "conducive".

"We are self-sufficient in terms of funds. In terms of capital infusion, we will be raising it at the right time when the markets are conducive", he said.