Indian Bank records Rs 190 crore net loss, TN holds 43% biz

Indian Bank MD and CEO, Padmaja Chunduru releasing the financial results of the bank at an event in Chennai on Tuesday. The bank’s executive directors V V Shenoy and M K Bhattacharya are also present.

Chennai: Public sector lender Indian bank reported a standalone net loss of Rs 189.77 crore during the fourth quarter ended 31 March, against a net profit of Rs 131.98 crore in the year-ago period.

At an event held in the city on Tuesday saw Padmaja Chunduru, the managing director and CEO of Indian Bank reveal the results.

“The loss on standalone basis was due to one-time higher provisioning of Rs 220 crore made towards IL&FS and another company,” said Padmaja Chunduru, without mentioning the name of the firm.

During the quarter, total income stood at Rs 5,537.47 crore against Rs 4,954.21 crore, while gross non-performing assets reduced marginally to 7.11 per cent of the gross advances from 7.37 per cent. Net NPAs came down to 3.75 per cent from 3.81 per cent.

Total provisions and contingencies for the quarter was higher at Rs 1,639 crore with bad loans standing at Rs 1,432.94 crore against Rs 1,772.03 crore, compared to the year-ago period.

Although the lender recorded Q4 loss, it recovered Rs 585.84 crore from an account with the NCLT and also got back Rs 94.61 crore in a fully provided for NPA account.

“In the case of IL&FS, it is a running account and resolution is yet to happen. We have made 98 per cent provision in the second account. Initially, the provisioning for these accounts was not there. All issues have been resolved. Our assets are well guarded and well provided for,” said the CEO.

“Capital adequacy is the strong point of the bank and we are the only bank to have not been handed out any capital in the last two years. it shows our intrinsic strength. Overall, southern markets contribute to 60 per cent of our business with Tamilnadu holding a good portion at 43 per cent. it is especially good in the RAM (retail, agriculture and MSME) sector,” said she.

In all global deposits grew 16 per cent, while advances upped by 15 per cent and current account and savings account grew by nine per cent.

NT Bureau