Business

Indian Bank Q3 net more than doubles, gets board approval to raise ₹4,000 cr

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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.

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