Public sector lender Indian Bank has posted a standalone net profit of ₹412 crore for the second quarter ended September, against a net loss of ₹1,755 crore, mainly on account of a 29% rise in non-interest income.
“This has been a quarter of strong growth in all key parameters,” Padmaja Chunduru, MD & CEO, Indian Bank told the media.
“The bank has recorded a 40% growth in operating profit and earned a net profit of ₹412 crore during the quarter,” she said.
“CASA is at a healthy 41%. Retail, agriculture and MSME sector grew by 5% and the share now stands at 55% of advances,” she added.
“The performance of Q2 is better than Q1. Going forward, we expect 8-10% uptake in credit growth during the current fiscal.”
Allahabad Bank had merged with the Indian Bank as on April 1. At that time, Allahabad Bank carried accumulated losses worth ₹19,000 crore. Net interest income rose 32% to ₹4,144 crore while net interest margin by 39 basis points to 3.06%. Non-interest income increased by 29% to ₹1,611 crore mainly on the back of fee income, forex income, recovery of bad debts and treasury income.
Gross non-performing assets (NPAs) declined to 9.89% of gross advances, from 12.64%, while net NPAs dropped to 2.96%, from 4.59%, of net advances. Recovery of bad debts improved by 38%. Provision coverage ratio stood at 84.39%.
During the quarter, the provisions and contingencies contracted to ₹2,583 crore from ₹3,890 crore. Specific loan loss provisions stood at ₹1,880 crore against ₹3,443 crore. It reported a 5% increase in total business to ₹8,67,853 crore.
Regarding the amalgamation with Allahabad Bank, she said that the merger was progressing very satisfactorily with more than 100 offices merged or rationalised so far. Centralisation of loan processing and IT integration was on track.
The bank’s total Capital Adequacy Ratio as per Basel III guidelines stood at 13.64%.
