Indian Bank on Monday reported a 34% jump in its net profit to Rs 690 crore for the third quarter, against Rs 514 crore in the corresponding quarter of last fiscal, mainly on account of increased income and higher cash recovery. The bank’s total income increased 3% to Rs 11,482 crore from Rs 11,168 crore.
Shanti Lal Jain, MD & CEO, said overall the bank could achieve a satisfactory performance in the third quarter. The asset quality, on a sequential basis, has improved, though it has dropped on a y-o-y basis.
“Gross NPA decreased from 9.56% in September’21 to 9.13% in December’21, that is 43 bps on QoQ basis. Net NPA reduced from 3.26% in September’21 to 2.72% in December’21, that is, 54 bps on QoQ basis. PCR improved from 83.32% in September’21 to 85.49% in December’21,” he said.
However, on a y-o-y basis, gross NPA went up by 9 bps from 9.04% to 9.13% while net NPA increased by 37 bps from 2.35% to 3.36%.
Cash recovery was higher at Rs 1,096 crore, against Rs 744 crore in Dec’20. AUC recovery was higher at Rs 278 crore as compared to Rs 129 crore. Non-interest income rose by 36%, supported by fee income growth of 11%. Growth in forex income was at 32%, PSLC commission was at 47% and recovery in bad debts was at 111%.
Capital adequacy ratio was at 15.47%, logging an increase by 141 bps y-o-y. CET improved by 103 bps from 10.35% to 11.38%. Tier I improved by 85 bps from 11.18% to 12.03%. Jain said: “we don’t have immediate plans to raise any capital immediately as we are adequately capitalised. In future, we may look at raising funds as and when required.”
The bank has identified a total of 34 accounts for transferring to National Asset Reconstruction Company amounting to Rs 5,400 crore. “As a first phase, we have transferred five accounts amounting to Rs 1,300 crore,” Jain said.