R ARIVANANTHAM
CHENNAI, JULY 28
State-owned Indian Bank on Thursday posted a 41 per cent increase in net profit at ₹ 1,709 crore in the April-June quarter from ₹1,213 crore in the corresponding quarter of last year, mainly due to decline in bad loans. Announcing the financial results for the first quarter of 2023, SL Jain, MD & CEO said that the net interest income increased ₹5,703 crore in Q1FY23 from ₹4,534 crore in Q1FY22.
- IFSC Branch at GIFT City registers a business of over Rs 1,800-crore
- Total income in the first quarter of the current fiscal rose to ₹ 14,759 crore as against ₹ 11,758 crore
- The lender’s interest income also increased to ₹ 13,049 crore from ₹ 10,153 crore in the same quarter a year ago
He also said that on a Q-o-Q basis, the net profit was up 18% to ₹1709 crore in June’23 from ₹1447 crore in March’23.
Apart from this, the Indian Bank also said that the net interest income increased by 26% YoY to ₹5,703 crore in Q1FY23 from ₹4,534 crore in Q1FY22.
The net interest income (NII) rose 25.8 percent at ₹5,703.5 crore in Q1FY24 in comparison to ₹4,534 crore in the corresponding quarter of last year. On a QoQ basis, the NII stood at ₹5703 crore in June’23 as against ₹5508 crore in March’23.
Jain said that the Return on Assets (RoA) improved to 0.95 percent in June’23 from 0.73% in June’22, while the Return on Equity (RoE) increased to 17.88% in Q1FY24 from 14.18% in the corresponding quarter of last year. The RoA improved by 13 bps QoQ to 0.95% in June’23, while RoE improved by 240 bps QoQ to 17.88% in June’23.
Currently, the bank has 5,798 domestic branches including 3 Digital Banking Units (DBUs), out of which 1970 are rural, 1517 are semi-urban, 1168 are urban and 1143 are in metro category. The bank has 3 overseas branches and 1 IFSC Banking Unit (IBU).
Replying to a query, Jain said that the IFSC Banking Unit (IBU) has registered business of over Rs. 1,800 crore. The bank has opened as many as 87 branches during the year and plans to open 11 branches in the near future.
He said that the transactions through ATM, BNA and Digital channels improved by 7% YoY in Q1FY24, while mobile banking users increased by 36% YoY. Also, UPI users and transactions increased by 33% YoY and 85% YoY respectively.
Total income in the first quarter of the current fiscal rose to ₹ 14,759 crore as against ₹ 11,758 crore. The lender’s interest income also increased to ₹ 13,049 crore from ₹ 10,153 crore in the same quarter a year ago. Bank witnessed improvement with the gross NPAs easing to 5.47 per cent of the gross advances by June 2023 from 8.13 per cent a year ago. The net NPA too declined to 0.70 per cent as against 2.12 per cent in Q1FY23.
