Indian bank Q3 net more than doubles

Indian Bank reported a standalone net profit of ₹514 crore for the third quarter ended December 2020. A statement from the lender compared this with a net loss of ₹1,739 crore a year earlier, that would have included a loss of the now-merged entity Allahabad Bank.

Indian Bank had reported standalone net profit of ₹247 crore a year earlier. The merger was consummated on April 1, 2020.

“The bank has continued its steady growth in both business and profit combined with good control over asset quality,” said Padmaja Chunduru, MD and CEO, Indian Bank. Gross non-performing assets (NPAs) as a percentage of gross advances declined to 9.04% from 12.69% and net NPAs fell to 2.35% from 4.22%.

“We will try to keep GNPA and NNPA below 10% and 3%, respectively,” she said.

Net interest income rose 31% to ₹4,313 crore, while net interest margin increased 42 basis points to 3.13%. The board approved a proposal to raise up to ₹4,000 crore from share sale to enhance the capital base and an additional ₹3,000 crore via bonds.