Coal India's Net Profit Falls About 40% In Second Quarter

  • Coal India's Net Profit Falls About 40% In Second Quarter

Coal India's Net Profit Falls About 40% In Second Quarter

Coal India Ltd posted 40 per cent drop in net profit to Rs 369 crore for the quarter ended September 30 as compared with Rs 612 crore same period past year. Similarly, the net NPAs rose to 5.43 per cent from 4.19 per cent.

As of September 2017, the bank's gross NPAs deteriorated to 9.83 per cent of gross advances, compared with 7.14 per cent year a year ago.

The bank said that in order to boost its capital adequacy, the lender may raise around Rs 1,000 crore through QIP issue within the current fiscal.

The lenders Net Interest Income (NII) - the core income a bank earns by giving loans - increased 27.3 percent to Rs 18,585.90 crore versus Rs 14,600.16 crore past year.

Its net sales from operations for the quarter stood at Rs17748 crore compared to Rs16788 crore, in the year-ago, it said.

Bank of India, the market's sixth-biggest lender by assets, reported a 41 percent jump in second-quarter net profit on Friday, handily beating analysts' estimates, as its bad loan ratio also narrowed. Fresh slippages stood at Rs 9,026 crore in the reporting quarter.

At a time when demand for coal has started picking up and thermal power plants in the country face a severe shortage in their inventory, Coal India, the world's largest coal mining company, posted a profit of Rs 368.88 crore with net sales recorded at Rs 17,478.52 crore for the quarter ended September 30, 2017.

On a postive note, the bank's asset quality improved on sequential basis post decline in fresh slippages in the second quarter. Net NPAs increased to Rs 97,896.29 crore as against Rs 60,013.45 crore.

Its cost of deposit reduced to 5.46 per cent in the quarter under review as against 6.02 per cent in the same quarter past year. Majority might be going to the National Company Law Tribunal as there are very few accounts that can be resolved outside, Kumar said.