Indian Bank on Saturday reported a 2.7 per cent rise in net profit to Rs 1,213.44 crore for the April-June quarter on tepid income growth even as provisioning came down by a fair margin.
The state-run bank had posted a net profit of Rs 1,181.66 crore in the corresponding quarter of June 2021.
Total income of the bank during the April-June period of 2022-23 rose marginally to Rs 11,758.29 crore from Rs 11,444.27 crore in the year ago period.
The bank’s interest income grew by 5.5 per cent to Rs 10,153.66 crore from Rs 9,623.59 crore, while income from other sources was lower by nearly 12 per cent to Rs 1,604.63 crore.
The bank’s bad loans came down by over 13 per cent, providing a leeway to set aside lower funds towards provisioning and contingencies, at Rs 2,218.93 crore for the quarter as against Rs 2,558.57 crore in the year-ago quarter.
The gross non-performing assets came down to 8.13 per cent of the gross advances as of June 30, 2022, from 9.69 per cent by end of June 2021.
In terms of value, the gross bad loans were worth Rs 34,573 crore, lower than Rs 37,759 crore.
The net NPAs were down at Rs 8,471 crore (2.12 per cent) from Rs 12,653 crore (3.47 per cent).
Non-performing asset provision coverage ratio is 88.08 per cent at end of Q1FY23.
Capital adequacy ratio stood at 16.51 per cent as of June 30, 2022 (15.92 per cent as on June 30, 2021).
The state-owned lender said it restructured as many as 49,236 MSME borrower accounts with an outstanding of Rs 3,280 crore.
Besides, it held provision of Rs 6,243.48 crore (100 per cent of total outstanding amount) as of June 30, 2022 for the accounts covered under the provisions of Insolvency and Bankruptcy Code.