NE BUSINESS BUREAU
CHENNAI, JAN 25
Public sector lender Indian Bank has on Wednesday reported a whopping 52 percent rise in its net profit to Rs 2,119 crore in the third quarter of financial year 2023-24. The lender had earned a net profit of Rs 1,396 crore in the same quarter a year ago. This was helped by higher income growth and lower provisions amid challenges faced on the margin front, Shanti Lal Jain, MD & CEO said.
- The bank’s asset quality continued to improve as its gross NPA dropped to 4.47 per cent in the December 2023 quarter from 6.53 per cent in the year-ago quarter: Shanti Lal Jain, MD & CEO
- Total expenses higher by 26 per cent at Rs 12,003 crore against Rs 9,489 crore as the bank continues to be on a growth curve
- Indian Bank stands at 2nd position under overall performance of VBSY campaign
However, the bank’s operating profit stood at Rs 4,097 crore against Rs 4,061 crore, on the back of a single-digit rise in net interest income at Rs 5,815 crore (Rs 5,499 crore).
While interest income rose to 20 per cent at Rs 14,198 crore (Rs 11,834 crore), non-interest income grew by 11 per cent at Rs 1,902 crore (Rs 1,716 crore). Total expenses were higher by 26 per cent at Rs 12,003 crore against Rs 9,489 crore as the bank continues to be on a growth curve.
“As a result of wage settlement, we signed up for a 17 per cent hike, we provided for the same along with some amount for the consequent increase in pension during the quarter,” S L Jain added.
Provisions (excluding taxes) were lower by 46 per cent at Rs 1,350 crore (Rs 2,515 crore).
However, fresh slippages were higher at Rs 1,429 crore compared with Rs 1,192 crore in the year-ago quarter, but lower than Rs 1,976 crore in the preceding quarter. Of the Rs 1,429 crore slippages, the agriculture sector accounted for a higher amount at Rs 592 crore (Rs 197 crore in Q3 of FY23), followed by MSME (Rs 411 crore), retail (Rs 293 crore) and corporate (Rs 133 crore).
Total recoveries (cash and upgradation) were at Rs 2,509 crore (Rs 2,631 crore).
The bank’s asset quality continued to improve as its gross NPA dropped to 4.47 per cent in the December 2023 quarter from 6.53 per cent in the year-ago quarter and 4.97 per cent in the September 2023 quarter. Net NPA fell to 0.53 per cent from 1 per cent in the year-ago quarter and 0.6 per cent in the preceding quarter.
The bank’s domestic advances rose 12 per cent at Rs 4,74,355 crore in Q3 of this fiscal (Rs 4,24,162 crore). Retail, agriculture, and MSME loans grew by 14 per cent at Rs 99,251 crore, 16 per cent at Rs 114,422 crore, and 7 per cent at Rs 83,172 crore. These three segments accounted for 62.58 per cent of the gross domestic loans. Corporate loans grew by 10 per cent at Rs 1,77,510 crore.
Domestic deposits grew 8 per cent at Rs 6,29,401 crore (Rs 5,83,998 crore). Domestic CASA share saw a marginal decline to 41.14 per cent from 41.18 per cent in Q2FY23.
The total business of the bank grew by 11 per cent y-o-y and stood at Rs 11.64 lakh crore as of December 31, 2023.
He further added that the three Regional Rural Banks’ subsidiary of Indian Bank have also performed well during Q3 ended Dec 31, 2023.
Indian Bank stands at 2nd position under the over performance of Viksit Bharat Sankalp Yatra campaign. The bank has conducted over 4590 campaigns across India, said an official.
