Indian Bank on Monday reported a 36% year-on-year increase in its second quarter net profit to Rs 2,706 crore, aided by higher interest income and lower provisioning expenses.
Total income rose 13% to Rs 17,770 crore during the July-September quarter. Interest income saw a 12% increase to Rs 15,348 crore while other income climbed 22% to Rs 2,422 crore. Interest expenses stood at Rs 9,153 crore during Q2FY25, compared with Rs 8,003 crore in the year-ago period. Net interest margin was at 3.39%.
Indian Bank’s total business grew 10% YoY to Rs 12.44 lakh crore for the latest quarter. Of this, deposits saw an 8% growth to Rs 6.93 lakh crore while advances increased at a faster pace of 12% to Rs 5.51 lakh crore. The credit-to-deposit ratio rose to 79.44%, compared with 76.82% in the year-ago period.
The retail, agriculture and MSME (RAM) segment accounted for 63% of the bank’s Rs 5.13 lakh-crore domestic advances while the remaining came from the corporate loan book.
On the deposit side, the share of low-cost current account, savings account deposits slipped to 38.86% (40.11%) of global deposits in Q2FY24.
The bank showed an improvement on the asset quality front with gross NPAs declining to 3.48% of gross loans by the end of September 2024, from 4.97% a year ago. Net NPAs came down to 0.27% from 0.60%. The provision coverage ratio rose to 97.60% from 95.64% in September 2023.
Fresh slippages (including RAM and corporate loans) during the quarter under review stood at Rs 1,357 crore, compared with Rs 1,976 crore in the same quarter last year.
Shares of Indian Bank gained over 10% to close at Rs 551.95 on the National Stock Exchange.