Indian Bank announced a rise of 11 per cent in its net profit for the first quarter ended on June, 30, 2010. Net profit of the public sector lender stood at Rs. 368.15 crore for the quarter.

A whopping 185 per cent increase in provisions and contingencies checked the bank's net profit growth despite a 33 per cent growth in its profit from operations. The bank's operating profit stood at Rs. 837.82 crore for the quarter.

Net interest income of the bank jumped 26 per cent to Rs. 926.65 crore during the quarter, the bank said in a filing to the Bombay Stock Exchange.

However, on a downside, the bank has witnessed some serious problem in its asset quality as its gross non-performing assets have swollen 108 per cent year-on-year during the quarter to Rs. 988.37 crore. Even net NPA have seen a rise of 407 per cent on year-on-year basis and 253 per cent on a quarter-on-quarter basis to Rs. 511.40 crore.

Nevertheless, total business of the bank increased to Rs. 159027 crore during Q1 FY2010-11 from Rs. 128700 crore at the end of Q1 FY2009-10.