Indian Bank on Tuesday reported widening of net loss to Rs 217.74 crore for March quarter 2019-20 due to higher provisions, even as the bad loan proportion came down.
Income in the quarter under review increased to Rs 6,334.37 crore from Rs 5,537.47 crore in the same period of 2018-19, it said. In December quarter, the income was Rs 6, 505.62 crore. The bank’s provisions for bad loans and contingencies were hiked to Rs 1,891.86 crore for March quarter of 2019-20 as against Rs 1,638.83 crore in year-ago same period. On asset front, Indian Bank showed improvement as gross NPAs (non performing assets) were trimmed to 6.87 per cent as at March- end 2020 from 7.11 per cent by the year-ago same period.
Net NPA or bad loans were down at 3.13 pc from 3.75 pc a year earlier. The bank has reported one loan account in the power and steel sector in consortium lending of 33 lenders, under borrowal fraud category to RBI during Q2 of 2019-20 and the amount of outstanding was Rs 854.92 crore as on March 31, 2020. “The account was already under NPA category since FY 2016 and provision amounting to Rs 854.92 cr is held in the account as at 31.03.2020,” it said. Padmaja Chunduru MD & CEO, Indian Bank said, “Growth in advances was led by retail sector which grew at 16% followed by agriculture and MSME sector (14% and 13% respectively). Overseas advances grew by 11%.”