Public sector lender Indian Bank on Friday reported a net profit of Rs 1,709 crore for the fourth quarter of FY21. The Chennai-based bank incurred a Rs 1,641-crore net loss in the same quarter last fiscal. Total income of the bank was at Rs 10, 648 crore as compared to Rs 11,485 crore, registering a drop of 7%.
The amalgamation of Allahabad Bank into Indian Bank came into effect on April 1, 2020. Accordingly, the combined financials as on March 31, 2020, were arrived at by aggregation of audited numbers of the two banks, Indian Bank said.
Padmaja Chunduru, MD & CEO, Indian Bank, said all the parameters such as business, earnings, asset quality and capital have made significant improvement in the fourth quarter.
The net interest income of the bank rose by 1% in Q4FY21 to Rs 3,334 crore from Rs 3,310 crore in Q4FY20 and on a sequential basis, it decreased by 23%. The net interest margin (NIM) decreased by 33 basis points (bps) and was at 2.34% as against 2.67%. Non-interest income was at Rs 1,744 crore as against Rs 1,728 crore, on account of higher profit on sale of investment, forex income and PSLC commission.
The CASA deposits recorded a year-on-year (y-o-y) growth of 14% and share of CASA to total deposits was 42% in March 2021 as against 41% a year ago. Growth in CASA was primarily, driven by a y-o-y increase of 32% in current account deposits and 12% in savings account deposits.
The asset quality of the bank improved in Q4, the gross NPA was at 9.85% of gross advances as on March 2021, brought down by 154bps y-o-y from 11.39% as on March 2020. The net NPA came down to 3.37% from 4.19% with a reduction of 82 bps y-o-y. Its total capital adequacy ratio (CRAR) was at 15.71% with growth of 244 bps y-o-y. On a sequential quarter basis, it increased by 165 bps from 14.06% in Q3FY21.
Provisions and contingencies were at Rs 839 crore as against Rs 4,042 crore and operating expenses decreased by 4% to Rs 2,530 crore as against Rs 2,637 crore.
Total business recorded growth of 8% y-o-y, reaching the level of Rs 9,28,388 crore in March 2021 as against Rs 8,57,499 crore in March 2020. Total deposits grew by 10% y-o-y to Rs 5,38, 071 crore as compared to Rs 4,88, 835 crore. Priority sector portfolio increased to Rs 1,30,274 crore from Rs 1, 27, 542 crore, the bank said.