Indian Bank has shown strong growth in its earnings and profit, with a net profit increase of over 50% for the March 2024 quarter and the full fiscal year FY24.

S L Jain, the Managing Director & CEO of the bank, credited the substantial increase in net profit to the growth in operating profit, increase in interest and non-interest income, and reduced provisions.

The Board of the Bank has recommended a dividend of ₹12 per equity share (120 per cent) for 2023-24.

The Chennai-headquartered bank has posted a net profit of ₹2,247 crore for the quarter ended March 31, 2024, compared with ₹1,447 crore in the year-ago quarter, an increase of 55 per cent. Operating profit of India Bank stood at ₹4,305 crore in Q4FY24 as against ₹4,016 crore in Q4 of FY23.

 Interest income rose 19 per cent to ₹14,624 crore (₹12,244 crore), while non-interest income increased by 13 per cent to ₹2,263 crore (₹1994 crore). Net interest income grew by 9 per cent at ₹6015 crore (₹5508 crore).

Provisions for NPA were lower at ₹900 (₹1,040 crore in March 2023 quarter). Fresh slippages were significantly lower at ₹1,238 crore, about 90 per cent of which was contributed by MSME and agri books, while the remaining portion was in retail when compared with Rs.2566 crore.

Gross NPA was lower at 3.95 per cent in the March 2024 quarter compared with 4.47 per cent in the December 2023 quarter and 5.95 per cent in the March 2023 quarter. Net NPA remained below one per cent and stood at 0.43 per cent, down from 0.53 per cent in the preceding quarter and 0.90 per cent in the year-ago quarter.  

For the full year ended March 31, 2024, the bank’s net profit grew by 53 per cent to ₹8,063 crore compared with Rs.5282 crore in FY23. Its operating profit rose 10 per cent to ₹16,840 crore (₹15,271 crore).

Net interest income rose 15 per cent to ₹23,274 crore in FY24 (as against ₹20,225 crore in FY23).

Provisions for NPA were significantly lower at ₹3,653 crore as against ₹6,516 crore. Total recovery (cash plus upgradation) at Rs.8799 crore was higher than fresh slippages of ₹6,635 crore in FY24.

Total deposits grew 11 per cent to ₹688,000 crore (₹621,166 crore in FY23), while total advances rose 13 per cent to ₹533,773 crore (₹473,586 crore in FY23).

Retail, Agriculture, and MSME (RAM) loans grew by 15 per cent (at ₹104,735 crore), 19 per cent (at ₹121,062 crore), and 6 per cent (at ₹84,121 crore) respectively. The three segments accounted for 62.21 per cent of gross domestic advances.

The bank’s business through digital Channels reached ₹81,250 crore in FY24. Jain said the bank plans to hire about 1,800 people this fiscal year.