CHENNAI: Indian Bank's net profit for the April-June quarter dropped by 46% to Rs 317 crore compared to Rs 462 crore during the same period last year. "The bank has made higher provisions than required towards NPA ( non-performing assets, Rs 124 crore), pension, gratuity and expected wage revision to the tune of Rs 419.5 crore," chairman and managing director, T M Bhasin said.
Total business of the bank registered a year-on-year growth of 17.2% to Rs 2,58,795 crore in the June quarter. Of this, advances grew 16.3% to Rs 1,09,213 crore while deposits grew 17.8% to Rs 1,49,582 crore. Gross NPAs rose to Rs 3,723 crore from Rs 1,554 crore. Net NPAs also rose during the same period to Rs 2,486 crore as compared to Rs 963 crore.
During the quarter, the bank restructured accounts in the discom sector (or energy distribution) to the tune of Rs 35.01 crore. "We have contained our net NPA ratio at 2.3%. We have recovery strategy and action plan for the year wherein we are meeting up with the top-50 NPA borrowers every weekend to see which accounts can be upgraded and initiating recovery proceedings for others," Bhasin said.
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