State-owned Indian Bank's net profit jumped more than seven-times to Rs 373.48 crore for third quarter of the current fiscal, mainly on account of less provisioning for bad loans.
The bank had reported a net profit of Rs 48.48 crore in the October-December quarter of 2015-16.
"Total income has increased to Rs 4,557.25 crore for the quarter ended December 31, 2016 from Rs 4,444.58 crore for the same quarter a year ago," it said in a regulatory filing.
Bank's core income fell marginally to Rs 3,957.56 crore from Rs 3,999.39 crore a year earlier. However, income from other sources rose by 35 per cent to Rs 599.70 crore as against Rs 445.19 crore.
The net non-performing assets (NPAs) as a percentage of total loans rose to 7.69 per cent at the end of December 31, from 5.61 per cent in same period last year.
Net NPAs stood at 4.76 per cent of net advances disbursed till December-end, little higher from 3.17 per cent in the same period last fiscal.
The bank's provisions for bad loans and contingencies came down by 25 per cent to Rs 540.29 crore for the reported quarter, compared to Rs 718.05 crore parked aside during the same period a year earlier.
"The non-performing loan provisions coverage ratio is 56.46 per cent as on December 31, 2016," Indian Bank said.
Indian Bank stock was trading 5.18 per cent higher at Rs 271 apiece in afternoon trade on BSE today.
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