The Indian public bank announced Friday a 66.7% drop in net income for the second quarter ended in September, at 150.1 million rupees, due to the increase in bad debts.
The Bank's net income for the corresponding period from July to September 2017-2018 was Rs 451.5 million. However, the bank's total income increased to Rs 5,129.16 crore for the quarter. September of this year, compared with Rs 4,874.16 crores during the same period last year, the bank said in a regulatory document.
Asset quality deteriorated, with gross non-performing assets representing 7.16% of gross advances at the end of September 2018, compared with 6.67% in September 2017.
Net NPAs also increased to 4.23% of net advances at the end of the second quarter of this year, compared to 3.41% for the same period the previous year. The bank's provision for doubtful and unforeseen loans was increased to 1,004.3 crores for the July-September quarter, compared to 744.55 crores for the same period of the previous year.
The allowance for doubtful accounts alone amounted to Rs 752.47 billion, compared to Rs 633.36 million as of September 30, 2017.
The provision coverage ratio was 60.82% as at September 30, 2018.
During the semester, the bank allocated the recovery of 94.61 billion crores to a fully-funded NPA account, in accordance with the resolution plan approved by the National Company Law Tribunal (NCLT).
According to a legal opinion obtained and the final order rendered on the appeal, the recovered sum was considered part of the collection of the NPA, he added.