Comments
Public sector lender, Indian Bank, has recorded an all-around performance for the December 2022 quarter with a doubling of net profit, reduction in NPAs, double-digit growth in net interest margin, and credit offtake.
The Chennai-headquartered bank’s net profit doubled to ₹1,396 crore in Q3 of this fiscal compared with ₹690 crore in the year-ago quarter, supported by a higher operating profit on the back of growth in net interest income and other income.
The operating profit of Indian Bank grew 24 per cent at ₹4,061 crore when compared with ₹3,288 crore in the December quarter a year ago.
For the second quarter in a row, interest income crossed ₹10,000 crore and stood at ₹11,834 crore (as against ₹9,926 crore in Q3 of FY22).
Net interest income reported an increase of 25 per cent at ₹5,499 crore (as against ₹4,395 crore). Total non-interest income grew 10 per cent at ₹1,716 crore as against ₹1,143 crore a year ago, driven by a strong recovery of bad debts, an increase in fee-based income, and others.
Total provisions were marginally higher at ₹2,665 crore (₹2,598 crore in Q3 of FY22). Fresh slippages were significantly lower at ₹1,192 crore (of which ₹677 crore was in the MSME segment, ₹294 crore in the retail segment, and ₹197 crore in the agriculture category. Slippages in the corporate segment were at ₹25 crore (as against ₹955 crore). Cash recovery was higher at ₹1,339 crore (₹1,096 crore).
Declining NPAs
Gross NPAs (GNPA) declined to 6.53 per cent in Q3 of this fiscal from 7.30 per cent in September 2022 quarter and 9.13 per cent in December 2022 quarter. Net NPA was at just 1 per cent, down from 2.72 per cent in December 2022 quarter and 1.50 per cent in the preceding quarter.
“Quarter after quarter our gross NPA and net NPA have been coming down. Our business is growing, while profitability is also surging. Indian Bank is on the right growth path,” said Shanti Lal Jain, MD and CEO of Indian Bank.
The cost-to-income ratio was lower at ₹43.71 per cent in Q3 of this fiscal, down from 44.75 per cent in the December 2021 quarter and 44.27 per cent in September 2022 quarter.
Domestic advances grew 10 per cent to ₹4,14,162 crore (₹3,85,095 crore in Q3 of FY22). Retail, Agriculture and MSME loans grew by 15 per cent (at ₹87,219 crore), 15 per cent (at ₹98,220 crore), and 6 per cent (at ₹77,372 crore) respectively. The three segments accounted for 62 per cent of gross domestic advances.
Total deposits grew 8 per cent at ₹5,97,114 crore when compared with ₹5,62,575 crore in Q3 of last fiscal. CASA grew 3 per cent at ₹2,41,213 crore and had a 40.4 per cent share.
On the NSE today, the Indian Bank share of ₹10 face value, closed at ₹291.25, which was ₹1.10 (0.38 per cent) higher than the previous close.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.