Moneycontrol Bureau
Public sector lender Indian Bank said profit in April-June quarter grew by 42.8 percent to Rs 307.4 crore compared with Rs 215.3 crore in year-ago period. It was driven by other income, operating profit and stable provisions but higher tax cost limited growth. The stock surged more than 8 percent intraday to hit fresh 52-week high of Rs 168.
Net interest income, the difference between interest earned and interest expended, increased 10.4 percent to Rs 1,236.32 crore on yearly basis.
Other income for the quarter was up by 17.6 percent at Rs 441.7 crore and operating profit grew by 27.5 percent at Rs 903.2 crore compared with corresponding period of last fiscal.
Provisions for bad loans stood at Rs 417 crore during the quarter, increased by 2.2 percent year-on-year and 48.7 percent quarter-on-quarter.
Asset quality weakened a bit as gross non-performing assets as a percentage of gross advances increased 31 basis points to 6.97 percent and net NPA rose 28 basis points to 4.48 percent on sequential basis.
Gross NPA on absolute basis grew by 0.8 percent QoQ to Rs 8,894 crore and net NPA was up 2.4 percent at Rs 5,552 crore in the quarter ended June 2016.
Tax expenses more than doubled to Rs 178.8 crore during the quarter compared with Rs 85.3 crore in same period last year.Posted by Sunil Shankar Matkar
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