R ARIVANANTHAM
CHENNAI, MAY 8
The state-owned Indian Bank on Monday announced a 47 per cent rise in net profit to Rs 1,447 crore for fourth quarter ended March 31, 2023, helped by a decline in bad loans and a rise in interest income, said Chairman and Managing Director Shanti Lal Jain.
- The bank plans to raise about Rs 7,000 crore through equity and bond issues.
- The bank’s board has recommended a dividend of Rs 8.60 per share
- Its total income increases to Rs 14,238 crore against Rs 11,405 crore a year ago
- Gross NPAs reduced to 5.95 per cent of gross advances as of March 31, 2023, from 8.47 per cent by the end of March 2022
Announcing the Q4 and annual results of 2022-23 FY, S L Jain said that the bank had earned a net profit of Rs 984 crore in the Q4 of the previous financial year.
During the quarter, the bank’s total income increased to Rs 14,238 crore against Rs 11,405 crore a year ago, he added.
The interest income grew to Rs 12,244 crore during the period under review from Rs 9,832 crore in the corresponding quarter of the preceding fiscal.
The bank’s board has recommended a dividend of Rs 8.60 per share or 86 per cent of Rs 10 face value for the year ended March 31, 2023.
Gross non-performing assets (NPAs) were reduced to 5.95 per cent of gross advances as of March 31, 2023, from 8.47 per cent by the end of March 2022.
Net NPAs also came down to 0.90 per cent of the advances from 2.27 per cent a year earlier.
The fall in the bad loans ratio helped cut the provisions towards NPAs for Q4 FY23 to Rs 1,040 crore compared to Rs 2,046 crore in the year-ago period.
During the quarter and year ended March 31, 2023, the bank has made additional provisions of Rs 116.26 crore and Rs 363.61 crore, respectively, in certain stressed standard accounts in terms of RBI guidelines on ‘Prudential Framework for resolution of stressed assets’, he added.
The capital adequacy ratio of the bank declined marginally to 16.49 per cent from 16.53 per cent at the end of March 2022.
The board also approved a proposal for raising equity capital aggregating up to Rs 4,000 crore through various modes, including follow-on public offer (FPO)/ rights issue/ qualified institutional placement (QIP)/ preferential issue or any other mode or combination in 2023-24.
Besides, the board has also given approval for raising funds aggregating up to Rs 3,000 crore through the issuance of Basel III Compliant AT 1 Perpetual Bond or Tier-2 Bond in one or more tranches during the current or subsequent financial years based on the requirement.
For the year ended March 2023, the Bank’s profit increased by 34 per cent to Rs 5,282 crore against Rs 3,945 crore in the previous fiscal.
The total income rose to Rs 52,085 crore compared to Rs 45,772 crore, Jain added.
Mahesh Kumar Bajaj, Executive Director said that the bank has so far launched 23 digital products and another 17 are on the pipeline. He also explained in detail on the initiatives on the digital front.
Executive Directors Ashutosh Choudhury, Ashwani Kumar, Imran Amin Siddique, General Managers and other top officials were also present.
