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Public sector lender Indian Bank has reported a 34 per cent jump in its net profit at ₹690 crore for the quarter ended December 31, 2021, when compared with ₹514 crore in the year-ago quarter, supported by higher non-interest income.
In the September 2021 quarter, the bank reported ₹1,089 crore net profit. In Q3 of this fiscal, the operating profit of Indian Bank grew 16 per cent at ₹3,288 crore when compared with ₹2,846 crore in the December quarter a year ago.
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Total income grew three per cent to ₹11,482 crore (₹11,168 crore in Q3 previous fiscal). Net interest income was higher by 2 per cent to ₹4,395 crore (as against ₹4,314 crore). Total non-interest income grew 36 per cent at ₹1,556 crore as against ₹1,143 crore a year ago
“All components including fee income and forex income of non-interest income have reported growth during the December 2021 quarter,” said Shanti Lal Jain, MD & CEO of Indian Bank.
The cost to income ratio stood at ₹44.75 per cent in Q3, down from 47.85 per cent in the December 2020 quarter and 45.85 per cent in September 2021 quarter.
Total provisions
Total provisions were higher by 11 per cent at ₹2,598 crore (₹2,332 crore in Q3 of FY20). Fresh slippages in Q3 were at ₹2,732 crore, of which ₹955 crore was in the corporate segment, ₹896 crore in the MSME segment given continuing stress in the segment, ₹601 crore in retail and ₹280 crore in agriculture. Cash recovery was higher at ₹1,096 crore.
Gross NPAs (GNPA) stood at 9.14 per cent in Q3 of this fiscal as compared to 9.56 per cent in September 2021 quarter and 9.04 per cent in December 2020 quarter. Net NPA was at 2.72 per cent, up from 2.35 per cent in December 2020, but down from 3.26 per cent in the preceding quarter.
Domestic advances grew marginally to ₹3,85,095 crore (₹3,79,073 crore in Q3 of FY21). Retail, agriculture and MSME loans grew by 13 per cent ( ₹75,646 crore), 14 per cent (₹85,257 crore) and 6 per cent (₹72,835 crore), respectively. The three segments accounted for 61 per cent of gross domestic advances.
Total deposits grew 8 per cent at ₹5,62,575 crore when compared with ₹5,21,248 crore in Q3 of last fiscal. CASA grew 10 per cent and had a 41.67 per cent share.
“Collection efficiency has improved from 88 per cent in the March 2021 quarter to 94 per cent in December 2021 quarter. With the economy showing improvements and increase in credit off-take, we hope to register 8-9 per cent growth in this fiscal,” said Jain.
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