Indian Bank Q1 net triples to Rs 1,182 crore

Chennai-based public sector lender Indian Bank on Monday reported a 220% jump in its net profit to Rs 1,182 crore in the first quarter of FY22, against Rs 369 crore in the corresponding quarter last fiscal. Total income stood at Rs 11,500 crore in Q1, registering a flat growth over Rs 11,447 crore in the year-ago period. The bank has attributed the stellar growth in bottomline to increase in non-interest income, decrease in interest expenditure and higher operational efficiencies.

Padmaja Chunduru, MD & CEO, Indian Bank, told mediapersons that after successfully completing the amalgamation of Allahabad Bank during the previous year, the bank is now reaping the synergy benefits. With the vaccination programme picking up and the economy expected to open up in the coming quarter, the bank is well-positioned to leverage the growth opportunities.

“The capital adequacy ratio of the bank was at 15.92 % giving comfort to bank in ramping up the business. Oversubscription of QIP in June adding Rs 1,650 crore to equity, was another testimony to ever increasing market trust in the strong fundamentals of the bank,” she said.

Net interest margin (NIM) improved by 51 basis points (bps) on quarter-on-quarter (QoQ) sequential basis. It stood at 2.85% for Q1FY22, against2.83% for Q1FY21. Non- interest income was up by 41% y-o-y and 8% QoQ. It stood at Rs 1,877 crore, against Rs 1,327 crore in Q1FY21, on account of higher recovery in bad debts and rise in forex income.

The bank has made improvement on asset quality by bringing down gross non-performing assets (GNPA) by 121 bps to 9.69% from 10.9%. The net NPA ratio also declined by 29 bps to 3.47% from 3.76% in June 2020 ended quarter.

The capital adequacy (CRAR) of the bank stood at 15.92% with 247 bps y-o-y increase. On a sequential quarter basis, it increased by 21 bps from 15.71% in Q4FY21. The tier-I CRAR was at 12.22% in June 21, against 10.47%, up by 175bps y-o-y. On a sequential quarter basis, it rose by 28 bps from 11.94% in Q4FY21. Domestic CASA deposits of the bank grew by 9% y-o-y while moderated by 3% QoQ and touched Rs 2,20,874 crore in Q1FY22. Share of CASA to total deposits was at 41% in Q1FY22, against 42% a year ago. Current account deposits grew by 18% and savings account deposits by 8% y-o-y.