Indian Bank on Thursday reported a 7.3% year-on-year rise in its net profit for the December quarter to Rs 3,061 crore, owing to lower provisions and an improvement in the asset quality.
Shares of Indian Bank closed 6.2% higher at Rs 903.15 on the NSE.
The net interest income grew 7.5% YoY to Rs 6,896 crore and the net interest margin expanded to 3.28% from 3.23% a quarter ago. Other incomes rose 19% on year.
Total Business Expansion
The business grew 13.34% YoY to Rs 14.30 lakh crore, with gross advances rising 14.24% and deposits climbing 12.62%. The credit-deposit ratio stood at 80.77% as on December 31.
The retail, agriculture and MSME segment grew nearly 17% on year and formed 66.06% of total domestic advances. The corporate book grew 8.16% to Rs 2.06 lakh crore.
CASA deposits rose 9.86% on year and term deposits were up 14.34%. The domestic CASA ratio stood at 39.08%.
Improved Asset Quality
Provisions and contingencies fell 19% on year to Rs 857 crore in the reporting quarter. The provision coverage ratio stood at 98.28%. The gross NPA ratio improved to 2.23% as on December 31 from 2.60% a quarter ago, and the net NPA ratio improved to 0.15% from 0.16% as on September-end.
The capital adequacy ratio stood at 16.58% as on December 31.