CHENNAI: Indian Bank will sell about Rs 400 crore of non performing assets (NPAs) to asset reconstruction companies (ARCs) in the current financial year of FY25. During the last fiscal of 2023-24, the public sector bank sold Rs 464 crore of NPAs to ARCs.
Indian Bank MD & CEO S L Jain said, these pertains to assets facing issues in recovery and legal disputes. “What happens with ARCs is that they offer better solutions and then we sell. First, we try to recover ourselves. If we are unable to recover, then we give it to ARCs,” he said.
The bank posted a net profit of 41% at Rs 2,403 crore in the quarter ended June 30, 2024 against Rs 1,709 crore in the corresponding quarter last year. The rise in net interest income and non interest income were the major drivers for growth in net profit, Jain added.
Its gross advances increased by 12% YoY to Rs 5,39,123 crore in Q1 FY25 from Rs 4,79,404 crore during the same quarter previous year. The net NPA reduced by 31 bps to 0.39% in June, 2024 from 0.7% in the corresponding period of FY24. The fresh slippages for Q1 FY25 was at Rs 1,928 crore against Rs 1,753 crore in the year ago quarter.
