New Delhi: State-owned Indian Bank on Friday reported more than doubling of its profit at ₹514.28 crore for the third quarter ended December 2020.
The bank’s profit in the year-ago period stood at ₹247.16 crore.
Total income during the quarter under review was ₹11,421.34 crore, up from ₹6,505.62 crore in the same period a year ago, Indian Bank said in a regulatory filing.
However, the bank’s gross non-performing assets (NPAs) as a percentage of assets rose to 9.04 per cent during October-December 2020-21 from 7.20 per cent in the year-ago period.
The percentage of net NPA was lower at 2.35 per cent as against 3.50 per cent a year ago and 2.96 per cent in September quarter.
The bank said it had made provisioning of ₹2,314.35 crore towards bad loans and contingencies as against ₹1,529.26 crore in the same quarter a year ago.
During the quarter ended December 31, 2020, the bank raised additional tier-1 capital in three tranches aggregating to ₹2,000 crore through private placement of Basel III compliant AT 1 Perpetual Bonds. The bank’s board approved raising up to ₹4,000 crore via QIP/FPO/rights issue or in combination.
“The board has approved raising equity capital aggregating up to ₹4,000 crore through Qualified Institutions Placements (QIPs)/Follow on Public Offer (FPO)/ Rights Issue or in combination thereof subject to approval of Government of India, Reserve Bank of India,” the bank said in a regulatory filing.
Besides, the board has also given approval for raising another ₹3,000 crore through bonds.
The filing further said the board approved “raising AT 1/Tier 2 Capital aggregating up to ₹3,000 crore through issuance of Basel III Compliant AT1/Tier 2 Bonds in one or more tranches during the current or subsequent financial years based on the requirement”.
Non-performing loan provision coverage ratio is 86.51 per cent as on December 2020, it said.
On Friday, the bank’s scrip on NSE closed 0.95% higher at ₹90.15.