Indian Bank Q2 profit rises 18% at Rs405 crore

Indian Bank on Wednesday reported 18.48% rise in net profit at Rs405.13 crore for the September quarter helped by sharp fall in provision for taxes.

The bank had registered a net profit of Rs341.92 crore in the corresponding quarter of the previous financial year. Its total income increased marginally to Rs4,579.01 crore during the second quarter of 2016-17, as against Rs4,551.26 crore in the same period a year ago, the state-owned bank said in a regulatory filing.

For the quarter under review, Indian Bank’s provision for bad loans and contingencies jumped by over three-fold to Rs478.27 crore as against Rs137.07 crore, a year ago.

Its provision for taxes in the second quarter of the current fiscal declined by 46.08% to Rs122.79 crore as against Rs229.12 reported in the same period a year ago.

Gross NPAs rose to 7.28% of gross advances as on 30 September 2016, up from 4.61% a year earlier. Net NPAs soared to 4.62% of net loans, from 2.60%, a year ago.