Indian Bank standalone net profit for the quarter ended December has more than doubled to ₹1,396 crore over the year-ago period due to increase in net interest income and credit growth and improvement in asset quality.
“The bank is in a better financial health, well capitalised and the asset quality is continuously improving,” said S.L. Jain, MD & CEO.
“We have done well in all parameters. Slippages has been coming down quarter on quarter, while cash recoveries are up. In the last nine months, we have made cash recoveries of ₹6,500 crore against the target of ₹8,000 crore,” he said.
During the quarter under review, total income grew to ₹13,551 crore from ₹11,834 crore, of which net interest income accounted for a rise of 25% to ₹5,499 crore and non-interest income by 10% to ₹1,716 crore.
Net interest margin rose to 3.74% from 3.03%. Provision coverage ratio improved to 93.59% from 85.49%. Capital adequacy ratio stood at 15.74%.
Gross non-performing assets as percentage of gross advances declined to 6.53% or ₹29,484 crore from 9.13% or ₹36,540 crore. Net NPA dropped to 1% from 2.72%. Slippages during the period was ₹1,313 crore while cash recovery was ₹3,788 crore, he said.
RAM (Retail, Agriculture & MSME) advances grew by 12% to ₹2,62,811 crore. RAM contribution to gross domestic advances is 62%. Retail, Agri & MSME advances grew by 15%,15% and 6% respectively. Home loan (Including mortgage) grew by 12%, auto loan by 27% and personal loan by 35%.
Total business grew by 9%, of which deposit increased by 6% (₹5,97,114 crore) and advances by 13% (₹4,51,658 crore). The share of CASA to deposits stood at 40.4%.
“Our emphasis would be on improving the low-cost deposit base with focus on CASA, build a strong retail term deposits portfolio through new relationships and target a healthy and quality credit growth in the both RAM and Corporate Sector,” he said.