Lower bad loan provisions helped Indian Bank report a 24% rise in net profit for the first quarter to Rs 2,973 crore, compared with Rs 2,403 crore in the year-ago period.
Its pre-provision operating profit rose 6% year-on-year to Rs 4,770 crore from Rs 4,502 crore.
Provisions against NPAs for the quarter stood at Rs 387 crore, compared with Rs 896 crore in the same period last year. Total provisions were also lower at Rs 691 crore, down from Rs 1,258 crore.
The Chennai-headquartered lender’s asset quality improved, with the gross non-performing assets (NPA) ratio falling 76 basis points to 3.01% at the end of June, from 3.77% a year earlier.
Its net interest margin (NIM) for the quarter stood at 3.35%, 19 basis points lower than in the year-ago period.
Net interest income rose modestly by 3% to Rs 6,359 crore, while other income recorded a healthy 28% rise to Rs 2,439 crore.The state-owned lender’s gross advances grew 11.5% year-on-year to Rs 6.02 lakh crore, while total deposits rose 9.26% to Rs 7.44 lakh crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)