Provisions for non-performing assets declined 39 percent quarter-on-quarter and 29.5 percent year-on-year to Rs 385.48 crore for quarter ended December 2017.
Public sector lender Indian Bank's third quarter (October-December) profit fell by 18.8 percent year-on-year to Rs 303.1 crore, dented by higher provisions & contingencies and lower other income; but supported by higher revenue growth with improvement in asset quality.
The bank had reported profit at Rs 373.5 crore in corresponding quarter of last fiscal.
Net interest income, the difference between interest earned and interest expended, grew by 30.2 percent to Rs 1,623 crore compared to year-ago.
Asset quality improved during the quarter as the gross non-performing assets were lower at 6.27 percent from 6.67 percent in previous quarter and net NPAs were also declined at 3.30 percent from 3.41 percent QoQ.
In absolute terms, gross NPAs were down 0.3 percent sequentially to Rs 9,595 crore but net NPAs increased 3 percent to Rs 4,898 crore in Q3.
Provisions and contingencies were higher YoY as well as QoQ, but provisions for non-performing assets declined 39 percent quarter-on-quarter and 29.5 percent year-on-year to Rs 385.48 crore for quarter ended December 2017.
Other income or non-interest income slipped 8.5 percent to Rs 548.85 crore and operating profit increased 18.4 percent to Rs 1,209.2 crore compared to year-ago.At 13:54 hours IST, the stock price was quoting at Rs 358.35, up Rs 19.00, or 5.60 percent on the BSE.