Indian Bank posts 52% rise in Q3 net profit

 

State-owned Indian Bank reported a 51.84 percent rise in its net profit to Rs 2,119.35 crore in the third quarter of financial year 2023-24. On a sequential basis, net profit of the lender rose 6.6 percent.

This was on the back of better asset quality and increase in fee based income.

Gross non-performing assets (NPA) of the bank as of December 31, 2023, stood at 4.47 percent, as against 4.97 percent last quarter and 6.53 percent last year. The company's net NPA stood at 0.53 percent, as against 0.60 percent in the last quarter and 1 percent last year.

In absolute terms, gross NPA eased to Rs 22,787 crore in October-December quarter, from Rs 24,488 crore in a quarter ago period and Rs 29,484 crore in a year ago period.

Net NPA fell to Rs 2,579 crore in December quarter, from Rs 2,826 crore a quarter ago and Rs 4,271 crore a year ago.

In the reporting quarter, the total deposit of the lender rose 10 percent on-year to Rs 6.54 lakh crore. On quarterly basis, deposits rose 2 percent.

Of the total deposit, bank have a domestic deposit of Rs 6.29 lakh crore and Rs 24,753 crore overseas deposits. On a yearly basis, domestic and overseas deposits grew 8 percent and 89 percent, respectively.

CASA deposit grew by 8 percent, savings deposit grew by 7 percent and Current deposit by 12 percent on a yearly basis. Domestic CASA ratio stood at 41.14 percent.

The advances of the state-owned lender grew 13 percent on-year to Rs 5.1 lakh crore in October-December quarter.

RAM (Retail, Agriculture & MSME) advances grew by 13 percent on-year to Rs 2.97 lakh crore in reporting quarter, from Rs 2.63 lakh crore in a year ago period. RAM contribution to gross domestic advances is 62.58 percent.

Retail, Agri & MSME advances grew by 14 percent, 16 percent and 7 percent on-year, respectively.

Home Loan (Including mortgage) grew by 12 percent on-year, Auto Loan by 46 percent on-year and Personal Loan by 30 percent on-year. Priority Sector portfolio stood at Rs 1.72 lakh crore in third quarter of the current financial year.

The net interest income (NII) of the bank rose just 6 percent on-year in the October-December quarter to Rs 5,815 crore. In the quarter ago period, it stood at Rs 5,741 crore and in a yearo ago period it stood at Rs 5,499 crore.

The net interest margins of the lender stood at 3.41 percent in October-December quarter, from 3.46 percent in a quarter ago period and 3.67 percent in a year ago period.

The total domestic investment of the lender increased in the reporting quarter by 13 percent to Rs 2.06 lakh crore. Domestic investment includes investment in SLR and non-SLR securities.

In SLR securities, investment in state government securities and central government securities rose 22 percent and 6 percent, on-year respectively. However, investment in treasury bills reduced by 33 percent.

As of December 31, 2023, the lender have securities worth Rs 1.47 lakh crore in held to maturity (HTM), Rs 59,024 crore in Available for Sale (AFS), and Rs 433 crore in Held for Trading (HFT).

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Indian Bank Q2 Net profit rises 61%

 

Public sector lender Indian Bank has reported a 61 per cent rise in net profit during the second quarter of the financial year FY24 to Rs 2,068.49 crore, compared to Rs 1,287.39 crore during the same period last financial year. The improved net profit is mainly due to a 23 per cent increase in net interest income (NII) for the quarter.

The total income of the Chennai-based bank also rose by 25 per cent during the quarter, reaching Rs 15,929.4 crore compared to Rs 12,714.2 crore in the same quarter of the FY23. "Indian Bank is strategically expanding its business with a major focus on retail, agriculture, and MSME sectors, targeting 10-12 per cent credit growth in FY24. Adopting digital banking as our core focus, we are committed to fostering financial growth and prosperity for individuals and businesses across diverse sectors of society. Through constant innovation, we aim to simplify processes, enabling quick and convenient banking," the bank said in a statement on Thursday. The bank's NII, the difference between interest earned and interest expended, stood at Rs 5,741 crore, compared to Rs 4,684 crore during the second quarter of the previous financial year.

The bank's gross non-performing assets (NPA) for the quarter under review stood at 4.97 per cent of gross advances, a decrease from 7.30 per cent in the corresponding period of the previous year. Similarly, the net NPA improved from 1.5 per cent at the end of September 2022 to 0.60 per cent as of September this year.

The provision coverage ratio also improved to 95.64 per cent from 91.08 per cent at the end of September 2022. The bank's return on average assets increased to 1.06 per cent in the second quarter of FY24, up from 0.71 per cent in the second quarter of FY23. Its return on equity also rose to 19.90 per cent from 13.83 per cent in September 2022.

The total business of the bank recorded year-on-year growth of 10 per cent, reaching Rs 1,13,3091 crore in September 2023, from Rs 1,02,6801 crore in September 2022. Its advances increased by 12 per cent year-on-year to Rs 4,92,288 crore in September 2023 from Rs 4,37,941 crore in September 2022.

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Indian Bank Q1 results: Net profit rises 41%

Chennai-based Indian Bank on July 27 reported a 40.8 percent rise in net profit at Rs 1,708.8 crore for the April-June quarter of FY24, as against Rs 1,213 crore a year ago.

The public-sector lender's gross non-performing assets (GNPA) declined to 5.47 percent from 8.13 percent during the quarter, while net non-performing assets (NNPA) fell to 0.70 percent from 2.21 percent.

Indian bank's Net Interest Income (NII) has jumped 26 percent to Rs. 5703 in June 2023 from Rs. 4534 in June 2022. However, CASA deposits increased by 5 percent y-o-y to Rs. 250242 crores in June 2023. The provision coverage ratio (PCR) has improved by 702 bps YOY 95.10 percent from 80.80 percent in June 2022.

Total income in the first quarter of the current fiscal rose to Rs 14,759 crore as against Rs 11,758 crore, Indian Bank said in a regulatory filing. The lender's interest income also increased to Rs 13,049 crore from Rs 10,153 crore in the same quarter a year ago.

However, the capital adequacy ratio of the bank declined to 15.78 per cent at the end of June compared to 16.51 per cent in the year-ago period.

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Indian Bank Q4 net profit up 48% as NII rises 29%

 

State run Indian Bank posted a 48 per cent rise in consolidated net profit at Rs 1,520 crore in Q4 FY23, compared to Rs 1,024 crore in the same period in FY22 and helped by a rise in income and improved asset quality.

The Chennai-based lender’s total income during the quarter under review picked up by 25 per cent to Rs 14,416 crore as against Rs 11,556 crore in Q4 FY22. As on March 31, 2023, the company’s gross non-performing assets (NPA) were 5.95 per cent of the gross advances, as compared to 8.47 per cent during the same period in 2022. Similarly, net NPA was seen at 0.90 per cent of gross advances as on March 31, 2023 as compared to 2.27 per cent during the same period in 2021-22.

Net interest income (NII), which is the difference between interest earned and interest expended, was seen at Rs 5,519 crore in Q4 FY23, increasing 29 per cent when compared to Rs 4,271 crore during the same period in FY22.

Indian Bank's board recommended a dividend of Rs 8.60 per equity share (86 per cent of paid up equity capital of the bank) for FY23. The lender reported an earning per share (EPS) of Rs 12.20 for the period compared to Rs 8.22 for the period ended March 31, 2022.

In Q4 FY23, the bank’s return on average assets was seen up at 0.89 per cent from 0.62  per cent in the Q4 of FY22. Its total capital adequacy ratio (CAR) during the quarter remained the same as Q4FY22 at 16.84 per cent.  

During the entire financial year 2022-23, the bank’s net profit increased by 35 per cent to Rs 5,572 crore as against Rs 4,142 crore in 2021-22. Its total income during the year under review was up by 14 per cent to Rs 52,790 crore as against Rs 46,268 crore in 2021-22.

The bank board has also cleared a plan to raise equity capital aggregating up to Rs 4,000 crore through various modes, including follow-on public offer (FPO), rights issue, qualified institutional placement (QIP) or combination in 2023-24.

The board approved raising around Rs 3,000 crore through the issuance of Basel III Compliant AT 1 Perpetual Bond or Tier-2 Bond in one or more tranches during the current or subsequent financial years based on requirement.

The bank’s cost-to-income ratio improved to 46.47 per cent in March 2023 from 53.03 per cent in March 2022. Its domestic NIM improved to 3.59 per cent during the period from 2.87 per cent last year, advances too increased by 14 per cent YoY to Rs 4,73,586 crore in March 2023 from Rs 4,15,625 crore in March 2022.

RAM (Retail, Agriculture and MSME) advances grew by 12 per cent YoY to Rs 2,72,679 crore from Rs 242,700 crore last year. RAM contribution to gross domestic advances was 61 per cent with retail, agri and MSME advances growing by 13 per cent, 16 per cent and 7 per cent YoY respectively.

Home Loan (Including mortgage) grew by 11 per cent YoY, auto loan by 28 per cent and Personal Loan by 46 per cent during the period. The bank’s deposits increased by 5 per cent YoY and reached Rs 621,166 crore in March 2023. Its CASA ratio stood at 42 per cent. 

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Indian Bank Q1 net profit rise 4%

 

State-run Indian Bank has posted a 4 per cent increase in net profit for the first quarter of the financial year 2022-23 to Rs 1,311 crore as compared with Rs 1,259 crore during the same period during the last financial year.

Total income of the bank during the April-June quarter of 2022-23 also increased by 3 per cent to Rs 11,898 crore from Rs 11,553 crore in the year ago period. The bank’s operating profit for June 2022 was seen up by 4 per cent at Rs 3,575 crore from Rs 3,435 crore in June 2021.

The gross non-performing assets decreased by 156 basis points (bps) to 8.13 per cent of the gross advances as of June 2022, from 9.69 per cent during the same time last year. Its net non-performing assets also reduced by 135 bps to 2.12 per cent from 3.47 per cent in June 2021. Non-performing asset provision coverage ratio improved by 608 bps to 88.08 per cent during the first quarter of 2022-23 from 82 per cent in Q1 of 2021-22.

During the period under review, the net interest income increased by 13 per cent to Rs 4,534 crore from Rs 3,995 crore during the same time last financial year. Non-Interest income (excluding treasury income) grew by 37.67 per cent to Rs 1,736 crore in June 2022 from Rs 1,261 crore during the same quarter last financial year.

Deposit increased by 8 per cent year on year and reached to Rs 5,84,251 crore in April to June quarter of 2022. CASA also grew by 8 per cent. Advances increased by 9 per cent to Rs 4,25,203 crore during the quarter, from Rs 3,89,626 crore in June 2021.

“The core operations of the bank have contributed to this growth. This is because our retail credit has gone up by 14 per cent, housing loan by 11 per cent, auto loan by 22 per cent, personal loan by 32 per cent and gold loan by 42 per cent. Along with this CASA has grown by 8 per cent. So the result is increase in NII and other income,” said

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Indian Bank Net profit rise 34% in Q3

 

Indian Bank reported a 34 per cent year-on-year (YoY) rise in net profit at Rs 690 crore for the December quarter, despite a 21 per cent growth in provisions and contingencies. Net profit was Rs 514 crore in the year-ago period.

The bank saw a 30 per cent rise in earnings from treasury operations, unlike most of its peers, helping its profit numbers.

Its net interest margin from domestic operation was at 3.03 per cent for the December quarter against 2.89 per cent for the preceding quarter. The NIM was 3.13 per cent in the year-ago period.

The bank's operating profit rose 16 per cent to Rs 3,288 crore for the quarter against Rs 2,846 crore in the year-ago period. Net interest income was at Rs 4,395 crore compared with Rs 4,314 crore over the same period. The bank set aside Rs 2,493 crore for provisions and contingencies in the quarter under review against Rs 2,061 crore it did earlier.

Its gross non-performing assets ratio stood at 9.13 per cent at the end of December as against 9.56 per cent three months prior to that. Net NPA was at 2.72 per cent against 3.26 per cent.

It saw fresh slippages of Rs 2,732 crore while cash recovery from bad loans was Rs 1,096 crore. The company plans to transfer five NPA accounts totalling Rs 1300 crore into the bad bank initially, managing director Shanti Lal Jain said.

He is expecting the bank to achieve an 8 per cent rise in advances for FY21 even as its advances growth so far remained muted at 3 per cent YoY at Rs 4 lakh crore.

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Indian Bank Q2 results: Net profit jumps 2.6x

State-owned Indian Bank has reported a 2.6-fold rise in net profit for the September quarter buoyed by earnings from treasury operation and bad loan recovery while it logged lower interest income and higher provisions. The net profit for the quarter was at Rs 1089 crore as against Rs 412 crore in the year-ago period.

Its quarterly net interest margin (NIM) from domestic operation fell to 2.89 per cent from 3.06 per cent in the same period last year. Net interest income declined by 1 per cent at Rs 4084 crore as compared with Rs 4144 crore over the same period.

The bank’s managing director Shanti Lal Jain, who took charge on September 1, exuded confidence that interest income would rise with higher credit offtake which is expected going forward with the economic recovery.

Its operating profit rose 11 per cent at Rs 3276 crore as against Rs 2942 crore, riding on 26 per cent higher non-interest income at Rs 1966 crore as against Rs 1558 crore in the year-ago period. Non-interest income was buoyed by recovery of bad debts as well as higher forex income, Jain said.

The lender made a total recovery of Rs 3426 crore including upgradation of accounts as compared with Rs 1168 crore earlier. Provisions & contingencies for the second quarter ending September 30 were at Rs 2187 crore, 13.6 per cent lower compared with Rs 2530 crore earlier.

The bank’s gross non-performing assets ratio improved to 9.56 per cent at the end of the quarter from 9.89 per cent a year back. Net NPA however rose to 3.26 per cent as against 2.96 per cent over the same period.

It has seen fresh slippages of Rs 3952 crore with the classification of Srei Group’s account as NPA contributing Rs 1828 crore to it. "The slippage is due to one NBFC group account. We are not overly concerned over asset quality in the future," Jain said.

Its advances grew by 5 per cent to Rs 3.86 lakh crore, primarily driven by growth in retail, agriculture and MSME lending. Loans to these sectors constitute 60 per cent of the bank’s total advances.

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Indian Bank posts multifold jump in Q1 net profit

 

State-owned Indian Bank on Monday reported a multifold jump in its net profit to Rs 1,182 crore for the first quarter ended June 30, 2021. The bank had reported a net profit of Rs 369 crore in the corresponding quarter a year ago.

Total income during April-June 2021 inched higher to Rs 11,500.20 crore, from Rs 11,446.71 crore in the year-ago period, Indian Bank said in a regulatory filing.

Its interest income was down five per cent to Rs 9,624 crore in the first quarter of the current financial year, against Rs 10,120 crore a year ago.

On the asset quality front, the lender's gross non-performing assets (NPAs) fell to 9.69 per cent of the gross advances as of June 30, 2021, from 10.90 per cent by the end of June 2020.

Net NPA or bad loans also softened to 3.47 per cent from 3.76 per cent.

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