Indian Bank loss widens to Rs 218 crore in Q4

Indian Bank on Tuesday reported widening of internet loss to Rs 217.74 crore for March quarter 2019-20 attributable to greater provisions, even because the unhealthy mortgage proportion got here down.

The financial institution posted a lack of Rs 189.77 crore for January-March 2018-19, it mentioned in a regulatory submitting.However, within the previous December quarter the financial institution logged a revenue of Rs 247.16 crore.

Income within the quarter beneath evaluation elevated to Rs 6,334.37 crore from Rs 5,537.47 crore in the identical interval of 2018-19, the general public sector lender mentioned. In December quarter, the revenue was Rs 6, 505.62 crore.

The financial institution’s provisions for unhealthy loans and contingencies have been hiked to Rs 1,891.86 crore for March quarter of 2019-20 as towards Rs 1,638.83 crore in year-ago similar interval.

On asset entrance, Indian Bank confirmed enchancment as gross NPAs (non performing property) have been trimmed to six.87 per cent as at March- finish 2020 from 7.11 per cent by the year-ago similar interval.

Net NPA or unhealthy loans have been down at 3.13 per cent from 3.75 per cent a 12 months earlier.

The financial institution has reported one mortgage account within the energy and metal sector in consortium lending of 33 lenders, beneath borrowal fraud class to RBI throughout second quarter of 2019-20 and the quantity of excellent was Rs 854.92 crore as on March 31, 2020, it mentioned.

“The account was already under NPA category since FY 2016 and provision amounting to Rs 854.92 crore is held in the account as at 31.03.2020,” it added. “In respect of another advance account declared as fraud in Q1 of FY 2020-21, the bank has provided Rs 307.98 crore (25 per cent) as on 31st March 2020 and the remaining unprovided amount of Rs 923.94 crore has been debited to revenue reserves and credited to provisions in line with RBI circular,” Indian Bank mentioned.

Further on COVID-19 associated measures, it mentioned provisions at 15 per cent aggregating to Rs 108.90 crore towards the accounts with excellent of Rs 725.99 crore which have been customary as on February 29, 2020 have been made. They would have slipped to NPA/sub-standard class as on March 31, 2020 had the RBI debt servicing reduction as above not been reckoned. “In respect of above accounts, interest income aggregating Rs 39.46 crore has been reckoned in operating profit and an equal amount has been made as additional provision against those assets,” it mentioned.

Non-Performing Loan Provision Coverage ratio is 73.05 per cent as on March 31, 2020. Indian Bank inventory jumped 7.07 per cent to shut at Rs 68.90 on BSE.