Indian Bank Q1 net up 21% to Rs 372 cr on robust growth in other income

Bad loan provisions more than double in Q1 to Rs 681 cr from Rs 327 cr for Q1 of FY17

Public sector lender Indian Bank posted a 21 per cent rise in net profit at Rs 372 crore for the quarter ended June 2017, predominantly driven by robust growth in other income and a steady rise in net interest income.

The Chennai-based bank had posted a net profit of Rs 307 crore in April-June 2016 (first quarter of FY17).

Its stock was trading Rs 332 per share, up 0.5 per cent over the previous close, on the BSE.

The net interest income rose by 18 per cent to Rs 1,460 crore in the first quarter of FY18 from Rs 1,237 crore in the year-ago quarter. Other income, comprising fees, commissions, and treasury revenues, rose by 48 per cent to Rs 652 crore in April-June 2017 from Rs 441 crore in the first quarter of FY17.

Its provisions for non-performing assets (NPAs) more than doubled to Rs 681 crore in the first quarter from Rs 327 crore for the corresponding quarter in the previous financial year. The Provision Coverage Ratio (PCR), indicating the strength of the balance sheet to absorb stress, stood at 61.65 per cent at the end of June 2017.

The gross NPA rose to 7.21 per cent at end of June 2017 from 6.97 per cent in June 2016. The net NPA position improved to 4.05 per cent from 4.48 per cent in the year-ago period.

The Capital Adequacy Ratio (CAR) stood at 13.58 per cent in June 2017, down from 13.98 per cent a year ago.