Indian Bank Q2 net profit more than doubles

Indian Bank on Wednesday said its second quarter net profit more than doubled on higher other income and a decline in provisioning.

The bank posted a net profit of ₹358.56 crore for the three months ended 30 September compared with ₹150.14 crore in the year-ago period.

Profit was higher than the Bloomberg poll of five analysts, which had estimated a loss of ₹328.10 crore.

Other income, which includes core fee income, rose 72.22% to ₹737.65 crore in the three months from ₹428.32 crore a year ago.

Provisions during the quarter decreased 9.46% to ₹909.37 crore as against ₹1004.34 crore in the year-ago quarter. In Apr-Jun, the bank had set aside ₹794.82 crore in provisions.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 7.63% to ₹1863.04 crore from ₹1730.93 crore in the corresponding period last year.

Gross non-performing assets (NPA), as a percentage of total advances, were at 7.2% in the September quarter compared with 7.33% in the June quarter and 7.16% in the year-ago quarter.

Post provision, the net NPA ratio was at 3.54% against 3.84% in the Apr-Jun quarter and 4.23% in the year-ago quarter.

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