R ARIVANANTHAM
CHENNAI, OCT 27
Chennai-headquartered public sector lender, the Indian Bank on Thursday reported a 62% jump in the second-quarter standalone net profit to ₹1,988 crore, driven by an increase in net interest income, other income and improvement in asset quality.
- The state-owned lender’s net interest income rose 23% to ₹5,741 crore, while fee based income grew by 11% to ₹805 crore in the second quarter on a year-on-year basis
- While interest income grew 28 per cent at ₹13,744 crore (₹10710 crore), non-interest income rose by 9 per cent at ₹1,992 crore (₹1,828 crore)
- Net NPA fell to 0.6 per cent from 1.5 per cent in the year-ago quarter and 0.7 per cent in the preceding quarter
“Quarter after quarter, our profitability, net interest income, and other income are growing,” said MD and CEO Shanti Lal Jain.
During the corresponding the bank had also achieved a higher net profit of ₹ 1,225 crore.
Releasing the Q2 results at the Bank’s headquarters in Chennai, SL Jain said, Bank’s operating profit grew 19 per cent at ₹4,303 crore (₹3,629 crore in Q2 of FY23), on the back of a 23 per cent rise in net interest income at ₹5,741 crore (₹4,684 crore). Bank’s asset quality continues to improve and also maintain higher recoveries than slippages, he added.
While interest income grew 28 per cent at ₹13,744 crore (₹10710 crore), non-interest income rose by 9 per cent at ₹1,992 crore (₹1,828 crore). Provisions (excluding taxes) were lower by 25 per cent at ₹1,551 crore (₹2,508 crore).
Replying to a query, he said fresh slippages were higher at ₹1,976 crore, when compared to ₹1,471 crore in the year-ago quarter and ₹1,753 crore in the preceding quarter. Of the ₹1,976-crore slippages, the agriculture sector accounted for a higher amount at ₹720 crore (₹983 crore), followed by corporate (₹570 crore), MSME (₹451 crore) and retail (₹235 crore).
Total cash recoveries were also lower at ₹1,943 crore, against ₹2,009 crore in Q2 of FY23. Total recoveries (cash and upgradation) were at ₹2,265 crore (₹2,338 crore).
The bank continues to improve its asset quality as its gross NPA dropped to 4.97 per cent in the September 2023 quarter from 7.30 per cent in the year-ago quarter and 5.47 per cent in the June 2023 quarter. Net NPA fell to 0.6 per cent from 1.5 per cent in the year-ago quarter and 0.7 per cent in the preceding quarter.
The bank’s domestic advances rose 11 per cent at ₹4,58,681 crore in Q2 of this fiscal (₹4,11,498 crore in Q2FY23). Retail, agriculture, and MSME loans grew by 14 per cent (at ₹95,371 crore), 16 per cent (at ₹110,404 crore), and 5 per cent (at ₹.80,116 crore). These 3 segments accounted for 62.33 per cent of the gross domestic loans. Corporate loans grew by 11 per cent at ₹172,790 crore.
Domestic deposits grew 7 per cent at ₹6,19,969 crore (₹5,77,455 crore). Domestic CASA share slipped marginally to 41.37 per cent from 41.55 per cent in Q2FY23.
The total business of the bank grew by 10 per cent y-o-y and stood at ₹11.33-lakh crore as of September 30, 2023, the release from the bank said.
