Indian Bank net profit up 5%

Indian Bank has reported a net profit of Rs 277.52 crore during the quarter ended December 31, 2014 as compared to Rs 264.50 crore, a year ago, an increase of 5 %. The Bank's total income rose to Rs 4321.46 crore from Rs 4112.33 crore, a growth of 5 %.

"The provisioning and the taxes was higher compared to the same quarter of previous year, which has reflected in the results", said T M Bhasin, chairman and managing director of Indian Bank. He said that the provisioning and the taxes together was at Rs 517 crore for the third quarter of this fiscal year compared to Rs 367 crore during the same period last year.

The provision for NPA during this year was around Rs 330 crore, while it was around Rs 150 crore last year.

However, the performance of the bank at the current scenario in the sector is better, because of the slightly better asset quality it has than others and the pricing and the growth in non interest income, which has gone up by about 47 %, he stated.

"We have shed about Rs 12,000 crore high interest rate deposits, that has reduced the cost of deposit, which has come down by about 12 basis point," he said.

Bank's Gross NPA rose to Rs 5461.05 crore from RS 3834.78 crore and net NPA rose to Rs 3236.14 crore from Rs 2483.60 crore.

In percentage terms net NPA increased to 2.74 % from 2.26 % and Gross NPA rose to 4.62 % from 3.42 %. The slippage during the quarter was over Rs 869 crore, lead by sugar sector which accounted to around Rs 230 crore, of which one account was of Rs 150 crore.

The recovery was of Rs 175 crore compared to Rs 130 crore during the same quarter of previous fiscal year. The NPA during the current quarter might be better, since the Bank has identified around 3 accounts which are of over Rs 150 crore, which has been upgraded last month.

Bank's Capital Adequancy Ration (Basel II) was at 1.43 % as compared to 12.96 % and CAR Basel III was at 13.06 % as compared to 12.49 %