Chennai, Jan 24 (IANS) Boosted by an Income Tax refund, Indian Bank closed the third quarter of the current fiscal with 62 per cent growth in net profit at Rs 247 crore and hopes the contraction in the corporate loan sector would reverse soon, a top bank official said on Friday.
MD and CEO Padmaja Chunduru also said the bank logged improved performance in all the parameters despite one corporate account turning bad during the quarter under review and the merger process with Allahabad Bank is progressing smoothly.
Announcing the results for the quarter ended December 31, 2019, she told reporters that the bank has posted a net profit of Rs 247 crore up from Rs 152 crore logged during the corresponding period of the previous year.
During the quarter under review, the bank got a tax refund of Rs 296 crore.
Chunduru said the bank had earned a total income of Rs 6,506 crore for the quarter under review as against Rs 5,269 crore earned during the corresponding period of the previous fiscal.
According to her, the Dewan Housing Finance Corporation Ltd (DHFL) account turned into a non performing asset (NPA) last quarter.
Chunduru said Rs 2,138 crore worth of loans turned fresh NPA last quarter up from Rs 1,769 crore of fresh slippages at the end of corresponding period last fiscal.
Provisions and contingencies were at Rs 1,672 crore owing to higher provisions towards NPA as against Rs 994 crore for the corresponding quarter ended December 31, 2018.
On the amalgamation with Allahabad Bank, Chunduru said it will be one of the successful mergers in the Indian banking industry.
She said the process is proceeding smoothly with various committees working on it.
Chunduru said consultant for the merger has been onboarded.
Queried whether the name of the amalgamated bank would be Indian Prayagraj Bank, she declined to comment.
On the contraction in corporate loans, Chunduru said sanctions have been made and the corporate sector have to take the amount.
She said the economy is expected to show an uptrend soon and the corporate loans would log growth.