Indian Bank on Friday reported a standalone net profit of ₹1,709 crore for the fourth quarter of FY21 as opposed to a net loss of ₹1,641 crore posted in Q4 of FY20.

It is to be noted that Allahabad Bank was amalgamated with Indian Bank with effect from April 1, 2020 and all the figures for FY20 were arrived at by aggregating the audited numbers of the two banks.

“Despite all the challenges this year, the bank has emerged a very strong, steady and consistent good performer. The bank has not only moved in the right direction but also made significant improvements in all the key parameters,” Padmaja Chunduru, MD and CEO of Indian Bank, said at the virtual press conference to announce the financial results.

The bank’s operating profit on a year-on-year basis grew by 6 per cent to ₹2,548 crore (₹2,401 crore) in Q4FY21. Net revenues (net interest income plus other income) on a Y-o-Y basis grew by 1 per cent to ₹5,078 crore (₹5,038 crore) while the non-interest income rose marginally to ₹1,744 crore (₹1,728 crore) during this period. The net revenue for full FY21 increased by 16 per cent to ₹21,745 crore.

Net NPAs down

Gross non-performing assets (GNPA), as a percentage of gross advances, stood at 9.85 per cent as of March 2021 down from 11.39 per cent as of March 2020. Net NPA also came down 3.37 per cent (4.19 per cent) during this period.

The total business grew 8 per cent to ₹9.28-lakh crore as of March 2021 from ₹ 8.57-lakh crore in the previous fiscal. Total deposits, on a Y-o-Y basis, grew by 10 per cent to ₹5.38-lakh crore (₹4.88-lakh crore). CASA deposits accounted for 42 per cent of the total deposits as of March 2021, primarily driven by a 32 per cent increase Y-o-Y in current account deposits and 12 per cent growth in savings account deposits. “This is one major synergy and benefit that has accrued from the amalgamation,” Chunduru said.

Its total advances on a Y-o-Y basis grew by 6 per cent to ₹3.90-lakh crore (₹3.68-lakh crore) as of March 2021.

For FY21, the bank’s total Capital Adequacy Ratio was at 15.71 per cent. “The CAR at 15.71 per cent as on March 2021 gives a lot of strength to the balance-sheet of the bank. The capital has always been very strong for the Indian bank, and we are continuing that strength post amalgamation also,” Chunduru added.

comment COMMENT NOW