New Delhi: State-run lender Indian Bank's fiscal fourth quarter (Jan-Mar) net profit fell 21.29% to Rs 3.45 billion from Rs 4.38 billion in the same quarter a year ago on high provisioning for bad loans and lower income, it said Friday.
The bank's provisions for bad loans and contingencies during the quarter rose more than four-fold to Rs 5.61 billion as compared to Rs 1.26 billion in the year-ago period, Indian Bank said in a filing to stock exchanges.
The company's net interest income in the three months to March 31, 2012 also declined by 10.65% to Rs 10.82 billion from Rs 12.11 billion in the corresponding period last fiscal year 2010-11.
Indian Bank's outstanding advances as on March 31, 2012 were at Rs 903.23 billion, rising by 20%, from Rs 752.49 billion a year ago, while its total deposits as on March 31, 2012 at Rs 1.2 trillion, rose by 14.28%, as compared to Rs 1.05 trillion a year ago.
The company's gross non-performing assets (NPAs), or bad loans, increased to 2.03% of advances as on March 31, 2012 from 0.98% in the same period previous fiscal year, while its net NPAs also rose to 1.33% from 0.53%.
Indian Bank's capital adequacy ratio -- the amount of capital in proportion to a lender's advances -- was at 13.47% at the end of the quarter lower than 13.56% in the same period last fiscal year.
The bank's net interest margin (NIM) was at 3.16% in the March quarter.
The board of directors of the bank recommended equity dividend of Rs 7.5 of face value of Rs 10 each, and dividend of Rs 10 per perpetual non-cumulative preference share of face value of Rs 100 each.
Shares of Indian Bank Friday ended at Rs 179.65 on the Bombay Stock Exchange (BSE), down 8.48% from the previous close.
Copyright Contify.com
