Indian Bank Q2 net profit falls 67%; Stock down 6%

Indian Bank on Friday reported a 67 per cent year-on-year fall in net profit at Rs 150 crore for the quarter ended September.

It had posted a net profit of Rs 451.5 crore in the same quarter last year.

Net interest income (interest earned minus interest expended) increased 12.1 per cent YoY to Rs 1,730.9 crore during the quarter under review as against Rs 1,544 crore in the same period a year ago.

Provision and contingencies increased 34.9 per cent YoY to Rs 1,004.3 crore in July-September 2018-19 over Rs 744.5 crore in Q2 of 2017-18.

Operating profit fell to Rs 1,191 crore from Rs 1,375.61 crore during the same period.

Asset quality of the lender deteriorated as percentage of gross non-performing assets increased to 7.16 per cent from 7.20 per cent on a QoQ basis. The figure stood at 6.67 per cent a year ago.

Net NPAs also increased to 4.23 per cent from 3.79 per cent QoQ. It was at 3.41 per cent in the same period last year.

Shares of the lender were trading 6.56 per cent down at Rs 244.90 after the announcement of the Q2 results.

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