Indian Bank net down, hopes to recover Rs 850 crore from NCLT accounts

Last Updated: Sat, Nov 10, 2018 15:45 hrs
Indian Bank (Image Courtesy: youtube)

Chennai: Indian Bank hopes to recover about Rs 850 crore over the next two quarters out of loan accounts referred to National Company Law Tribunal (NCLT), said a top bank official here on Friday.

Padmaja Chunduru, Managing Director and CEO, said higher provisioning for bad loans, mark-to-market losses and lower trading income resulted in Indian Bank's net profit going down to Rs 150.14 crore for the second quarter.

Announcing the bank's second quarter results Chunduru told the media that Rs 250 crore was expected to be realised during the third quarter and Rs 600 crore during the fourth quarter of the current fiscal.

"The amounts expected to be realised are realistic," she said.

The bank posted a net profit of about Rs 150.14 crore for the second quarter of the current fiscal down from Rs 451.55 crore posted during the previous year's corresponding period, according to Chunduru.

"No doubt it is a challenging phase. The recovery is expected to pan out in two to three quarters."

She said the bank had earned a total income of Rs 5,129.16 crore for the quarter that ended on September 30 up from Rs 4,874.15 crore earned for the quarter ended on September 30, 2017.

The total provisions for the second quarter was Rs 1,040.90 crore as against Rs 924.25 crore for the previous year corresponding period.

The provision for loan loss for the period under review was Rs 752.48 crore, up from Rs 633.36 crore for the previous year corresponding period.

Indian Bank's gross non-performance asset (GNPA) and net NPA stood at Rs 12,334 crore and Rs 7,060 crore as on September 30.