Chennai-headquartered public sector lender Indian Bank on Saturday reported a 3% increase in its net profit at Rs1, 213 crore for the first quarter of FY23 as against Rs1,182 crore in the corresponding quarter last fiscal.
Its total income stood at Rs11,758 crore as compared to Rs11,444 crore, registering a growth of 2.7%. Improving its asset quality, the gross NPA reduced by 156 bps to 8.13% from 9.69% while net NPA decreased by 135 bps to 2.12% from 3.47%. Provision coverage ratio improved by 608 bps to 88.08% from 82%, Indian Bank said in a statement.
Fresh slippage in the quarter stood at Rs2,885 crore in Q1FY23 as compared to Rs4,204 crore in the corresponding quarter of last fiscal. Cash recovery was at Rs929 crore as compared to Rs657 crore.
Net interest income increased 13% to Rs4,534 crore from Rs3, 995 crore while fee-based income grew by 35% to Rs627 crore. Non-interest income (excluding treasury income) grew by 37.67% to Rs1,736 crore from Rs1,261 crore. Domestic NIM stood at 3.10% as against 2.85% and on a sequential basis, it improved by 23 bps.
The bank’s total business recorded a growth of 9% reaching the level of Rs10, 09, 454 crore as against Rs9,29,708 crore.
Advances grew by 9% to Rs4,25,203 crore over Rs3,89,626 crore, primarily driven by the growth in RAM sector (12%) of which retail, agriculture and MSME grew by 14%, 13% and 8% respectively. On a sequential quarterly basis advances grew by 2%. Total deposits grew by 8% to Rs5,84, 251 crore as compared to Rs5,40, 082 crore.
Casa deposits recorded a growth of 8% and stood at Rs2,37,967 crore. The share of domestic Casa to domestic deposits was at 41.29% as against 41.42% a year ago. Casa growth was driven by 14% growth in current account deposits and 7% growth in savings account deposits, it said.
Indian Bank has envisioned tiered approach to achieve consistent business growth, starting with building of capabilities, streamlining operations to deliver exceptional customer experience and driving business value for stakeholders. The bank’s approach has shifted from conventional to digital banking to save time & resources and enrich customer satisfaction, it added.