Chennai, Feb 12 The public sector Indian Bank today reported a decline of 18.8 per cent in net profits at Rs 303.06 crore for the third quarter ending December 31, 2017 due to higher operating expenses and provisioning.
Current provisions have more than doubled from Rs 1,866.82 crore in Q2FY18, which would be an increase of 134.25% in Q3FY18.
On a sequential basis, however, the provisions stand reduced by 26.76 per cent and are down by about Rs 6.05 billion quarter on quarter.
He said the net profits for the nine month period ending December 31, 2017 increased to Rs 1,127.01 crore from Rs 1,085.97 crore registered during corresponding period of previous year.
Net interest income, the difference between interest earned and interest expended, grew by 30.2 percent to Rs 1,623 crore compared to year-ago.
Bank's total deposits remained nearly flat at Rs12,5579 crore, however, savings deposits increased by Rs220 crore from a year ago. Net interest income was down for the quarter at Rs347.94 crore, as against Rs360.98 crore. In 2013-14, state-owned banks wrote off bad loans worth Rs 34,409 crore; Rs 49,018 crore in 2014-15; Rs 57,585 crore in 2015-16 and hitting Rs 81,683 in the fiscal ended 31 March 2017. HDFC Bank reported an all-time high profit of Rs 4,642 crore for the quarter.
Net NPA of the bank came down to 3.30 per cent as of net advances as on December 31, 2017 from 4.76 per cent registered during same period of past year. Besides BoI, the large losses include SBI's surprise loss of Rs 2,416 crore, Central Bank of India's Rs 1,664 crore loss, IDBI Bank's fifth straight quarterly loss of Rs 1,524 crore and UCO Bank's 9th straight quarterly loss of Rs 1,016 crore.
"The advance portfolio has expanded by about Rs 384 crore mainly due to growth in MSME advance by 17.70 per cent and growth in housing loan and vehicle loan segment by 23.63 per cent and 31.31 per cent, respectively".