Thursday reported a 70% drop in standalone net profit to Rs 308.44 crore in the June quarter, owing primarily to increased provisioning for bad loans and a decline in interest income.
In the previous fiscal year, the bank earned a net profit of Rs 1,023.46 crore.
In the first quarter of the current fiscal year, total income fell to Rs 21,294 crore. According to a regulatory filing, it was Rs 22,515 crore in the previous year.
Interest income for the lender fell to Rs 18,757 crore from Rs 18,921 crore in the same quarter last year.
Gross Non-Performing Assets (NPAs) are expected to fall to 11.2 percent of gross advances by June 2022, down from 14.33 percent last year. As of March 2022, it stood at 11.78%.
Gross NPAs or bad loans stood at Rs 90,167.10 crore at the end of the first quarter of FY23, compared to Rs 1,04,075.56 crore the previous year.
The net NPA also fell to 4.26 percent from 5.84 percent in the same period the previous year.
However, bad loan provisions increased to Rs 4,814 crore in April-June FY23, up from Rs 3,248 crore the previous year.
The Provisioning Coverage Ratio was 83.04 percent in June of this year, compared to 80.26 percent at the end of June 2021.
“For more than two years, the Covid-19 pandemic has had a negative impact on global economic activity, including the Indian economy. However, the pandemic has had little impact on the bank’s results, operations, and asset quality “It stated.
The bank’s operating profit fell to Rs 5,379.21 crore in the most recent June quarter.
On a consolidated basis, the bank reported a net profit of Rs 281.73 crore in the June quarter, compared to Rs 1,168.33 crore the previous year.
The bank’s consolidated financial result includes five subsidiaries and 15 associates.
The bank’s capital adequacy ratio fell to 14.62 percent at the end of June, down from 15.19 percent the previous year.