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Kolkata: State-owned Indian Bank reported a 42.4% fall in net profit for the quarter ending March 31 due to higher provisions and adjustments under deferred tax assets (DTA) even as it reported higher earnings.

Net profit for the quarter was at Rs 984 crore against Rs 1709 crore in the year-ago period.

The bank got a write-back of Rs 161 crore against DTA adjustments which added to profit compared to a much higher write-back of Rs 913 crore in the year-ago period.

The DTA is spread over four quarters this time while in the year-ago period, the full-year DTA of Rs 913 crore got reflected only in the fourth quarter, taking the year-ago year profit higher, managing director Shanti Lal Jain explained. Total provision rose 20.4% at Rs 1914 crore against Rs 1590 crore.

Operating profit has seen a 15% rise at Rs 2738 crore against Rs 2386 crore on higher total income and lower expenses. Total income grew 9% at Rs 11405 crore against Rs 10485 crore.

Net interest margin, a key profitability measure, improved marginally at 2.87% for the reporting quarter against 2.34% in the year-ago quarter. Net interest income for the quarter stood at Rs 4255 crore showing a 28% year-on-year rise.

The bank’s asset quality improved with the gross non-performing assets ratio being at 8.47% against 9.85% a year back. This helped the bank to go for lower bad provisions at Rs 2046 crore against Rs 2870 crore. Total slippages during the quarter were Rs 3298 crore.

Its advances grew by 6% to Rs 4.16 lakh crore over Rs 3.90 lakh crore a year ago, driven primarily by the growth in retail, agriculture and MSME sector loans.

The bank’s capital adequacy ratio stood at a healthy 16.53%.

The bank has proposed a dividend of Rs 6.50 per equity share of the face value of Rs 10 for FY22, making it 65% of paid-up equity capital.


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