Indian Bank Q2 net profit jumps 164% to Rs 1,089 crore

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October 29, 2021 3:00 AM

Advances grew by 5% to Rs 3, 85,730 crore from Rs 3,65,896 crore, primarily driven by growth in RAM sector (13%). RAM constitutes 60% of the total advances. The bank has focused on capital light growth in credit.

On the asset quality front, the gross NPA decreased by 13 bps on q-o-q basis, net NPA reduced by 21 bps to 3.26 % from 3.47 % q-o-q. The capital adequacy ratio stood at 15.88%.On the asset quality front, the gross NPA decreased by 13 bps on q-o-q basis, net NPA reduced by 21 bps to 3.26 % from 3.47 % q-o-q. The capital adequacy ratio stood at 15.88%.

Chennai-based public sector lender Indian Bank on Thursday reported a 164% jump in its net profit at Rs 1,089 crore for the second quarter of FY22 as against Rs 412 crore in the year-ago period. Total income stood at Rs 11,440 crore as against Rs 11,616 crore, registering a marginal decline.

Shanti Lal Jain, MD & CEO, Indian Bank, told mediapersons that increase in other income and reduction in provisioning have helped the bank post profits in the second quarter.

On the asset quality front, the gross NPA decreased by 13 bps on q-o-q basis, net NPA reduced by 21 bps to 3.26 % from 3.47 % q-o-q. The capital adequacy ratio stood at 15.88%.

Jain said the fresh slippages were lesser at Rs 3, 952 crore as compared to Rs 4,204 crore in Q1FY22. Cash recovery was higher at Rs 831 crore and AUC (advance under collection) recovery was higher at Rs 775 crore compared to Q1. Fresh slippage as compared to y-o-y, was high due to corporate loans and crop loans.

Retail, agriculture and MSME (RAM) advances grew by 14%, 16% and 8%, respectively. RAM sector grew by 13%. Its contribution to domestic advances was at 60%, he said.

Net interest income (NII) declined by 1% y-o-y basis to Rs 4,084 crore from Rs 4,144 crore. However, on q-o-q sequential basis, it grew by 2%. The net interest margin (NIM) improved by 4 basis points (bps) on q-o-q sequential basis. It stood at 2.89% for Q2FY22 as against 3.06% for Q2FY21.

Non-interest income went up by 26% y-o-y and 8% q-o-q. It stood at Rs 1,966 crore as against Rs 1,558 crore in Q2FY21 on account of increase in recovery of bad debts (450%) and forex income (42%).

Advances grew by 5% to Rs 3, 85,730 crore from Rs 3,65,896 crore, primarily driven by growth in RAM sector (13%). RAM constitutes 60% of the total advances. The bank has focused on capital light growth in credit.

Total deposits grew by 10% to Rs 5, 51, 472 crore as against Rs 5, 01, 956 crore.

Current account savings account CASA deposits grew by 8% to Rs 2,25,309 crore. The share of CASA to total deposits stood at 41% while current account deposits grew by 14% and savings account deposits by 8%. Total business recorded a 8% growth, reaching the level of Rs 9, 37, 202 crore as against Rs 8,67,852 crore. On a sequential q-o-q basis, it increased by 1%.

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