Indian Bank’s standalone net profit for the quarter ended March rose 55% to ₹2,247 crore YoY due to an increase in interest income, reduction in provisions, and improvement in asset quality.
Net interest income increased by 9% to ₹6,015 crore, while net interest margin contracted to 3.44% from 3.56%, the public sector lender said in a statement.
Gross non-performing assets decreased by 200 bps to 3.95% and net NPA by 47 bps to 0.43%. Provision coverage ratio improved by 252 bps to 96.34%. Capital Adequacy Ratio stood at 16.44% against 16.49%.
Fresh slippages was ₹1,238 crore, while recovery including technical write-off was ₹2,679 crore.
Total business grew by 12% to ₹12.22 lakh crore, of which deposits increased by 11% to ₹6.88 lakh crore, while current account savings account deposit grew by 8%, savings deposit by 7% and current deposit by 9%.
Gross advances improved to ₹5.34 lakh crore from ₹4.74 lakh crore. Retail, Agriculture and MSME (RAM) advances grew 14% to ₹3.10 lakh crore.
RAM contribution to gross domestic advances was 62.21%. Retail, Agri & MSME advances grew by 15%, 19% and 6% respectively. Within the retail sector, home loan (including mortgage) grew by 11%, auto loan by 49% and personal loan by 10%. Corporate credit stood at 10% (₹1.88 lakh crore).
The board recommended a dividend of ₹12 per share.
“Our focus is to deliver value-added and suitable solutions through the acumen of empowered employees and smart use of technology to cater the needs of the customers,” MD & CEO S.L. Jain said, adding that the lender aimed to simplify banking, making it more accessible, convenient and secure for everyone.
