R ARIVANANTHAM
CHENNAI, JAN 25
Public sector lender Indian Bank on Wednesday reported nearly two-fold jump in profit at Rs 1,396 crore in the quarter ended December 2022, driven by increase in interest income, decline in bad loans, double-digit growth in net interest margin, and credit offtake.
- Total income increased to Rs 13,551 crore in the quarter from Rs 11,482 crore in the year-ago period
- Net interest income grows by 25 per cent to Rs 5,499 crore
- Net Interest Margin (NIM) Domestic increased by 54 bps to 3.74% in Dec’22 as against 3.20% in Sep’22
The net profit of stood at Rs 690 crore in the same quarter of the preceding financial year.
Total income increased to Rs 13,551 crore in the quarter from Rs 11,482 crore in the year-ago period, Shanti Lal Jain, MD and CEO of Indian Bank said.
At the same time, Net Interest Income increased by 25 percent to Rs 5,499 crore as against Rs 4,395 crore in the same quarter a year ago.
On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 6.53 per cent of gross advances as compared to 9.13 percent at the end of the third quarter of 2021-22.
Net NPAs too eased to 1 percent from 2.72 percent in the same quarter a year ago.
As a result, provisions for bad loans declined significantly to Rs 1,474 crore from Rs 2 439 crore in the same period a year ago.
The capital adequacy ratio inched up to 15.74 percent in December quarter as against 15.47 percent.
Net Interest Margin increased to 3.74 percent in December 2022 from 3.03 percent in December 2021.
Provision Coverage Ratio improved by 810 basis points to 93.59 per cent from 85.49 per cent in December 2021.
Total business recorded a growth of 9 percent reaching the level of Rs 10,48,772 crore at the end of third quarter as against Rs 9,63,007 crore in December 2021.
Advances grew by 13 per cent to Rs 4,51,658 crore while deposits increased by 6 per cent to Rs 5,97,114 crore at the end of third quarter ended December 2022.
The bank bagged the Best Performing Bank award in Tamil Nadu state for SHG-Bank linkage programme for FY22 from NABARD.
