NEW DELHI: Shares of Indian Bank slipped as much as 4.46 per cent on Thursday after the state-run lender withdrew dividend of Rs 6 per share.The bank's board had recommended the dividend on May 10 while declaring March quarter results.
It reported 59 per cent decline in net profit at Rs 131.98 crore for the quarter ended March 31, as provisions for bad loans nearly tripled.The bank had reported a profit of Rs 319.70 crore in the same period of 2016-17.Total income during the quarter, however, rose to Rs 4,954.20 crore, as against Rs 4,601.89 crore in the same period a year ago.The gross non-performing assets (NPAs) during the quarter declined marginally to 7.37 per cent from 7.47 per cent but the provisions for bad loans increased three-fold.In absolute terms, gross NPAs were at Rs 11,990.14 crore, up from Rs 9,865.13 crore in the year-ago period.Public sector banks have been reeling under piles of NPAs.
In its latest edition of Financial Stability Report, RBI stated that the state-run lenders accounted for a staggering 85 per cent of nearly 6,500 fraud cases, amounting to more than Rs 30,000 crore.
RBI also said that PSBs lacked effective credit screening and oversights resulting in a high volume of loan fraud.
The regulator also stressed that while the operational risk oversight frameworks of public and private sector banks were not different, the significant differences realised in operational risk called for a deeper introspection of the effectiveness of processes at state-run lenders.At 10:58 am, shares of the company were trading 336.15 apiece on BSE, down 3.27 per cent.