The net profit of state-run Indian Bank declined by 59 percent to Rs 131.98 crore for the fourth quarter (Q4) ended March 2018 from Rs 319.70 crore in the same period of the previous year.
In a regulatory filing, the bank reported a total income of Rs 4,954.20 crore for the quarter under review as against Rs Rs 4,601.89 crore a year ago.
Indian Bank's stock price fell as much as Rs 29.65 (8.65 percent) to Rs 313 after its results were announced. Its the highest drop in its share value in 5 years.
Despite the decline in gross non-performing assets (NPAs) for the quarter ended March 2018 to 7.37 percent from 7.47 percent, the bad loans had increased three-fold.
NPAs stood at Rs 1,546.33 crore for the quarter from Rs 806.91 crore in March 2017.
Indian Bank's YoY (year-on-year) provisions and contingencies doubled from Rs 806.91 crore to Rs 1,546.33 crore for the quarter.
Provisions for bad loans nearly tripled to Rs 1,772.03 crore against Rs 608.42 crore from a year ago. Net NPAs for the quarter in review also declined to 3.81 percent from 4.39 percent in March 2017.
Although the bank's profits had slumped, the bank's board recommended a dividend of Rs 6 per share of face value Rs 10 per share to the shareholders, which is 60 percent.
For the whole financial year 2017-18, the bank's profit was down by 11 percent to Rs 1,258.99 crore from Rs 1,405,67 crore in the previous year. The total income also dropped to Rs 19,519.48 crore, from Rs 19,531.91 crore in 2016-17.