Indian Bank reported standalone net profit for the June quarter rose 41% year-on-year to ₹2,403 crore on account of an increase in net interest income, other income and improvement in asset quality.
Total income rose to ₹16,945 crore from ₹14,759 crore, net interest income grew by 8% to ₹6,178 crore, and non-interest income rose 11% to ₹1,906 crore. Fee-based income rose 17% to ₹788 crore, while net interest margin slid to 3.53% from 3.61%.
Gross non-performing assets decreased by 170 bps to 3.77% and net NPAs slid by 31 bps to 0.39%. Slippage ratio was contained to 1.5% from 1.57%.
The bank’s capital adequacy ratio rose to 16.47% from 15.78%. The provision coverage ratio stood at 96.66% (95.10%). Provisions contracted to ₹1,259 crore from ₹1,741 crore.
“The bank is maintaining collection efficiency of 95%. Slippage was ₹1,928 crore, of which ₹900 crore came from MSMEs, ₹600 crore from agri and ₹400 crore from retail. In agri, slippages came mainly from farm loans. We also recovered ₹300 crore. But the recovery was ₹1,937 crore,” said MD & CEO Shantil Lal Jain.
Total business grew 11% to ₹12.20 lakh crore, with deposits accounting for ₹6.81 lakh crore and advances ₹5.39 lakh crore. Current account savings account grew 6% to ₹2.66 lakh crore.
Retail, Agriculture & MSME (RAM) advances grew by 13% to ₹3.13 lakh crore. Retail, agri and MSME grew by 14%, 18% and 6% respectively. Corporate advances accounted for 38% of total advances grew by 9% to ₹1.89 lakh crore.
RAM contribution to domestic advances was 62%. Housing loans grew by 13%, auto loans by 55% and jewel loans by 10%.
Published - July 29, 2024 07:51 pm IST
