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Indian Bank Q3 profit rise to Rs 514 crore; board approves raising Rs 4,000 crore from share sale

Bank’s gross non-performing assets (NPAs) also grew by 9.04 per cent during October-December 2020-21 from 7.20 per cent in the year-ago period.

SNS | New Delhi |

State-owned Indian Bank’s profit rose to Rs 514.28 crore for the third quarter ended December 2020. The bank’s profit in the year-ago period stood at Rs 247.16 crore.

Total income during this period stood at Rs 11,421.34 crore, up from Rs 6,505.62 crore in the same period a year ago, Indian Bank said in a regulatory filing on Friday.

Bank’s gross non-performing assets (NPAs) also grew by 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.

The bank further said it had made provisioning of Rs 2,314.35 crore towards bad loans and contingencies as against Rs 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 Rs 2,000 crore through a private placement of Basel III compliant AT 1 Perpetual Bond.

Non-performing loan provision coverage ratio is 86.51 per cent as on December 2020, it said.

In a separate regulatory filing, the bank announced that its board has approved raising Rs 4,000 crore through QIP/FPO/rights issue or in combination.

The board has approved “raising equity capital aggregating up to Rs 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.”

Besides, the board has also given approval for raising another Rs 3,000 crore through bonds.

The filing further said the board approved “raising AT 1/Tier 2 Capital aggregating up to Rs 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”.

On Friday, the bank’s scrip on BSE closed 1.56 per cent higher at Rs 90.90.