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Profit was impacted due to mark-to-market losses (writing down these assets on current values) in its bond portfolio as yields hardened, said M K Jain, executive director and with additional charge as managing director and chief executive.
Total income rose to Rs 4,494 crore from Rs 4,144 crore for the quarter ended June 2014.
A provision of Rs 83.1 crore was made towards the balance in arrears for a wage revision effective from November 2012. The aggregate liability provided as on June 30 was Rs 373.1 crore.
Gross non-performing assets (GNPAs) were 4.65 per cent of the total against 4.01 per cent a year before, from Rs 4,723 crore to Rs 5,815 crore. Net NPAs were 2.62 per cent, from the earlier 2.48 per cent, to Rs 3,193 crore from Rs 2,857 crore a year before.
The provision coverage ratio was 60.9 per cent, from 60.8 per cent as of end-March. The net interest margin was 2.44 per cent from 2.48 per cent at end-March and 2.36 per cent at end-June a year before.
Current and savings account deposits grew 15.5 per cent to Rs 49,452 crore, of which the latter grew 15.9 per cent to Rs 42,294 crore. It has shed Rs 2,585 crore of high cost deposits in this financial year and so, the cost of deposits declined to 6.94 per cent against 7.14 per cent a year before.
Jain said the capital position was healthy, with net worth improving to Rs 12,773 crore as of June 2015 from Rs 11,743 crore in June 2014. The capital to risk-weighted assets ratio was 12.12 per cent at the end of the quarter, of which Tier-I capital was 10 per cent.
Deposits were Rs 175,438 crore and advances were Rs 124,998 crore at the end of the quarter.
E-auction of properties
Indian Bank is planning to hold online auction of pledged properties next month.
"Next month we plan to auction online the properties mortgaged relating to around 280 accounts," M K Jain, managing director and ceo told reporters. He added, the amount lent by the bank to these accounts will be in the region of Rs 600 crore.
He said the bank has been holding e-auctions on standalone basis and the next month auction would be on a consolidated one.
The Bank has created a separate vertical to look into loan accounts above Rs 1 crore and monitor them closely.
For delinquent loan accounts where the borrowing is less than Rs 1 crore then action under the SARFAESI Act (The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act) would be taken.
On whether the bank's would reduce the lending rates, Jain said a decision would be taken after the Reserve Bank of India (RBI) announces its monetary policy next month.
