Indian Bank hits 52-week high post Q3 results

The stock up 8% to Rs 279 on the BSE after the bank reported profit of Rs 373 crore in Q3.

Indian Bank has rallied to its 52-week high of Rs 279, up 8% on the BSE after reporting a more than seven-fold jump in net profit at Rs 373 crore for the quarter ended December 2016 (Q3FY17) due to lower provisioning for bad loans. The state-owned bank had posted profit of Rs 48 crore during the same quarter last fiscal.

Net interest income, the difference between interest earned and interest expended, grew by 12.2% to Rs 1,247 crore while other income (non-interest income) surged 34% to Rs 600 crore over the previous year quarter.

Provisions for bad loans declined 30% year-on-year and 12.2% quarter-on-quarter to Rs 547 crore in Q3.

The assets quality remain stable with gross non-performing assets (NPA) as a percentage of gross advances stood at 7.69% in Q3 against 7.28% in Q2. Net NPA increased 14 basis points sequentially to 4.76% from 4.62% in previous quarter.

At 12:35 pm; the stock was up 6.5% at Rs 275 on the BSE as compared to 0.51% rise in the S&P BSE Sensex. A combined 2.46 million shares changed hands on the counter on BSE and NSE so far.