CHENNAI, NOV 3
The Indian Bank has reported 13 percent rise in net profit at Rs 1,225 crore for September quarter 2022-23 as provisions for bad loans fell, said its Managing Director and Chief Executive Officer Shanti Lal Jain here on Thursday.
The bank had posted a net profit of Rs 1,089 crore for the same period last year.
Total income in the quarter increased to Rs 12,538 crore from Rs 11,440.42 crore in the same period a year ago.
Net interest income during the quarter was higher 15 percent at Rs 4,684 crore. Fee income grew 18 per cent to Rs 723 crore.
Indian Bank has registered robust growth in key areas of business, profit, asset quality and more during Q2, FY 2022-23. Details on our website: https://t.co/HObeJvzDQn#IndianBank #AmritMahotsav#DFSIndiaCelebratesAmritMahotsav pic.twitter.com/HvRvV93ju7
— Indian Bank (@MyIndianBank) November 3, 2022
Asset quality of the bank improved as gross non-performing assets (NPAs) fell to 7.30 percent of gross advances (equivalent to Rs 31,959 crore) as of September 30, 2022 from 9.56 per cent (Rs 36,886 crore) by the end of same period a year ago.
Similarly, net NPAs or bad loans came down to 1.50 percent (Rs 6,174 crore) from 3.26 percent (Rs 11,749 crore).
However, total provisions for bad loans and contingencies were kept higher at Rs 2,404 crore for the quarter, up 10 percent from Rs 2,187 crore in the year-ago period.
Also, the bank’s recovery from bad debts fell 39 percent from a year ago to Rs 478 crore in September 2022 quarter.
The lender had fresh slippages to the tune of Rs 2,379 crore during Q2FY23, down from Rs 3,952 crore in the year- ago period.
Among other key ratios, the cost of income ratio improved to 44.27 percent from 45.85 percent and yield on advances moved up to 7.48 percent from 6.98 percent.
However, cost of deposits were higher at 4.02 percent against 3.86 percent and cost of funds were up at 4.05 percent versus 3.89 percent.
