R ARIVANANTHAM
CHENNAI, JULY 29
State-owned lender Indian Bank on Monday announced achieved 41 per cent jump in its net profit to Rs 2,403 cr for the June 2024 quarter due to a decline in bad loans. The Chennai-headquartered banker had earned a net profit of Rs 1,709 cr in the year-ago.
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During the quarter, the bank’s total income increased to Rs 16,945 cr against Rs 14,759 cr a year ago, said its Managing Director SL Jain.
Addressing the media, he said the bank’s interest income grew to Rs 15,039 cr during the period under review from Rs 13,049 cr in the corresponding quarter a year ago.
- In line with the budget announcement of enhancing Mudra loan to Rs.20 lakh, the bank has targeted to achieve Rs. 20,000 crore during the current financial year: SL Jain
- During the quarter, the bank’s total income increased to Rs 16,945 cr against Rs 14,759 cr a year ago.
On the asset quality side, the bank’s gross non-performing assets (NPAs) improved to 3.77 per cent of gross advances as of June 30, 2024, from 5.47 per cent in the April-June quarter of the previous fiscal.
The net NPAs also declined to 0.39 per cent of the advances from 0.70 per cent a year ago.
As a result, provisions for bad loans declined to Rs 896 cr against Rs 930 cr earmarked during the same quarter a year ago, he added.
The capital adequacy ratio of the bank increased to 16.47 per cent compared to 15.78 per cent on June 30, 2023, he said.
When asked about the bank’s recent launch INDSMART- new omni channel banking application, Mr Jain said the bank has added 13.7 lakh users including the employees/officers. The usage of INDSMART is gaining strength every day, as it has many digital offerings/loans including Agri Jewel, Shishu Mudra, Personal loan, renewal of MSME and KCC loans etc.
Replying to another query, Mr Jain said that in line with the budget announcement of enhancing Mudra loan to Rs.20 lakh, the bank has targeted to achieve Rs. 20,000 crore during the current financial year.
Mr Jain was flanked with Mahesh Kumar Bajaj, Ashutosh Choudhury, shiv Bajrang Singh, Brajesh Kumar Singh and other officials at the media briefing at its headquarters.
