Indian Bank’s Sep quarter net profit falls 67% to ₹150 cr
with ₹744.55 crore during the same quarter in the preceding year.
The bank added fresh bad loans worth ₹1,624 crore during the September quarter compared with ₹1,038 crore in the previous quarter.
In a call to analysts, the bank’s management said that it expects ₹1,000 crore of slippages per quarter till the end of the year.
The management also said that the bank has an exposure of ₹1,800 crore to Infrastructure Leasing & Financial Services Ltd (IL&FS), of which the bank has classified ₹280 crore as non-performing asset. The bank told analysts it expects to maintain gross nonperforming assets below 7% and net non-performing assets at 3.5% for the full financial year.
The bank added that it expects to recover ₹850 crore from resolutions of accounts referred to the National Company Law Tribunal.
Indian Bank’s provisions jumped 35% to ₹1,004 crore in the September quarter, compared with ₹745 crore a year ago.