Chennai-based public sector lender Indian Bank 's second quarter (July-September) net profit
rose at a slower pace of 6% year-on-year to nearly Rs 500 crore in 2012-13 on
the back of deteriorating credit quality resulting in higher provisions against
bad loans.
During the quarter, net interest income (NII) or the
difference between interest earned and paid out, fell marginally to Rs 1,120
crore as against Rs 1,135 crore a year back. Fee income rose 6% to Rs 363
crore.
Gross non-performing asset (NPA) ratio increased 40 basis
points to 2.06 quarter-on-quarter. Net NPA ratio too worsened by 29 basis
points to 1.33% in the three month period. This led to higher provisions
against bad loans. The bank's provisions shot up Rs 202 crore compared with Rs
145.7 crore in April-June quarter.
The bank's loan book expanded by about 11% y-o-y to Rs
95,000 crore, way below the RBI's projection for industry credit growth at 17%
in 2012-13. However, deposits grew nearly 13% to Rs 1.31 lakh crore. RBI
projected 14% deposit growth for the industry.
Capital adequacy ratio almost remained unchanged at 12.96%.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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