Indian Bank Q4 net profit slumps 59% to Rs 1.32 bn on higher NPAs

In absolute terms, gross NPAs were at Rs 119.90 bn, up from Rs 98.65 bn in the year-ago period

State-run Indian Bank on Thursday reported 59 per cent decline in net profit to Rs 1.32 billion for the quarter ended March 31, as provisions for bad loans nearly tripled.

The bank had reported a profit of Rs 3.19 billion in the same period of 2016-17.

Total income during the quarter, however, rose to Rs 49.54 billion, as against Rs 46.01 billion in the same period a year ago, Indian Bank said in a regulatory filing.

Although the gross non-performing assets (NPAs) during the quarter declined marginally to 7.37 per cent from 7.47 per cent, the provisions for bad loans increased three-fold.

In absolute terms, gross NPAs were at Rs 119.90 billion, up from Rs 98.65 billion in the year-ago period.

The bank made provisions and contingencies of Rs 15.46 billion for the quarter, more than double from Rs 8.06 billion in the year-ago period.

Provisioning for bad loans nearly tripled to Rs 17.72 billion during the quarter as against Rs 6.08 billion earlier.

Net NPAs also declined to 3.81 per cent as against 4.39 per cent a year ago.

Despite decline in profit, the bank's board recommended a dividend of Rs 6 per share of face value Rs 10 per, that is 60 per cent to the shareholders.

For the entire 2017-18, the bank's profit declined 11 per cent to Rs 12.58 billion as against Rs 1405.67 billion in the previous year.

The total income also declined to Rs 195.19 billion, as against Rs 195.31 billion in 2016-17.