Indian Bank’s net profit fall 21 per cent

Indian Bank’s net profit fall 21 per centIndian Bank has reported a fall of 21 per cent in its net profit in the fourth quarter till March 2012 to Rs. 345.42 crore against Rs. 438.86 crore in the same period in the previous year.

The fall in net profit is mainly attributed to reversal of interest on account of restructured loans and increased provisioning against non-performing loans.

T. M. Bhasin, Chairman and Managing Director of Indian bank said that the bank made an additional provision of Rs. 191 crore for non-performing loans. He also said that out of the total additional provision, about Rs. 52 crore was towards education loan segment.

The reversal of interest rate accounted for Rs. 171 crore on the restructured loans. Mr. Bhasin said the net NPA ratio of the bank increased to 1.33 per cent in the fourth quarter from 0.53 per cent in the same quarter of the previous year. Mr. Bhasin pointed out that the increase in NPA was due to delayed projects and economic slowdown.

The total income of the bank rose by 22 per cent to Rs. 3,498.02 crore in the fourth quarter compared to Rs. 2,865.80 crore in the same quarter of the previous financial year. Total provisions and contingencies accounted for Rs. 561.85 crore during the quarter compared to Rs. 126.80 crore in the same period in the previous year.

The bank has announced a dividend of Rs. 7.50 per share.