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Indian Bank has reported a 47 per cent increase in net profit for the March 2023 quarter, while its FY23 profit has crossed ₹5,000 crore. The bank’s asset quality continues to improve.
The board has recommended a dividend of ₹8.60 per equity share (86 per cent) for 2022-23. It has also approved a capital raise of about ₹7,000 crore.
The Chennai-headquartered bank has registered a net profit of ₹1,447 crore for the quarter ended March 31, 2023, when compared with ₹984 crore in the year-ago quarter, on the back of a strong rise in operating profit, increase in non-interest income, and lower provisions.
Operating profit in Q4 FY23 rose 47 per cent to ₹4,016 crore (₹2,738 crore in Q4FY22).
Interest income grew 24.5 per cent to ₹12,244 crore (₹9,832 crore), while non-interest income grew 27 per cent to ₹1,994 crore (₹1,573 crore).
Net interest income reported 29 per cent growth at ₹5,508 crore (as against ₹4,255 crore).
NPA provisions were lower at Rs 1,040 crore in the March 2023 quarter, when compared with Rs 2,046 crore in the March 2022 quarter. Fresh slippages were lower at ₹2,566 crore against ₹3,298 crore in Q4 of FY22.
Gross NPA was lower at 5.95 per cent in the March 2023 quarter, as compared to 6.53 per cent in December 2022 quarter and 8.47 per cent in March 2022 quarter.
Net NPA dropped below one per cent and stood at 0.90 per cent, down from 1 per cent in December 2022 quarter and 2.27 per cent in the year-ago quarter.
For the full year ended March 31, 2023, the bank’s net profit crossed the ₹5,000-crore mark to stand at ₹5,282 crore, as against ₹3,945 crore in FY22. Its operating profit grew to ₹15,271 crore (₹12,717 crore).
Interest income stood at ₹44,942 crore (₹38,856 crore in FY22). Net interest income grew to ₹20,225 crore (as against ₹16,728 crore), while non-interest income rose to ₹7,143 crore (₹6,915 crore).
“All the segments of credit – retail, Agriculture, MSME, corporate and mid-corporate – are reporting healthy growth and NPAs continue to decline every quarter,” said S L Jain, MD and CEO of the bank.
Total deposits grew to ₹6,21,166 crore (₹5,93,618 crore in FY22), while total advances were at ₹4,73,586 crore (₹4,15,628 crore in FY22).
Retail, Agriculture, and MSME (RAM) loans grew by 13 per cent (at ₹91,086 crore), 16 per cent (at ₹1,01,937 crore) and 7 per cent (at ₹79,656 crore) respectively. The three segments accounted for 61.43 per cent of gross domestic advances.
Total recovery (cash plus upgradation) at Rs.8504 crore was higher than fresh slippages of Rs.6642 crore in FY23.
The NPA provision coverage ratio was at 93.82 per cent as on March 31, 2023. (87.38 per cent as on March 31, 2022).
The bank’s networth grew to ₹37,431 crore as of March 31, 2023, when compared with ₹33,625 crore as of March 31, 2022.
Also read:Indian Bank doubles its Q3 net profit, NPAs report a big drop
The bank plans to raise equity capital aggregating up to ₹4,000 crore (including premium) through various modes viz. QIP, FPO, Rights Issue, or in combination thereof. It also plans to raise AT 1/ Tier-2 Capital aggregating up to ₹3,000 crore through issuance of Basel-III Compliant AT 1 Perpetual Bonds / Tier-2 Bonds in one or more tranches during the current or subsequent fiscal years, said a statement.
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