 "Indian Bank profit jumps 34% to Rs 690 crore in December quarter")
Indian Bank on Monday reported 34 per cent jump in standalone profit after tax (PAT) at Rs 690 crore for December quarter 2021-22 helped by higher non-interest income.
The state-owned lender had reported a PAT of Rs 514 crore for the year-ago period.
During the quarter our operating profit grew 16 per cent. This was driven by growth in NII and other income. Our fee income rose by 11 per cent, forex income by 32 per cent and recovery in bad debts also increased by 111 per cent, Managing Director and CEO S L Jain told reporters.
Net interest income (NII) marginally grew by 2 per cent to Rs 4,395 crore from Rs 4,314 crore in the year-ago period.
Operating profit rose 16 per cent to Rs 3,288 crore. Non-interest income surged 36 per cent to Rs 1,556 crore. Fee income and forex income grew 11 per cent and 32 per cent, respectively.
The bank's recovery of bad debts increased by 111 per cent to Rs 278 crore in the quarter. Domestic net interest margins (NIM) declined by 10 basis points to 3.03 per cent from 3.13 per cent in the year-ago quarter.
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Gross non-performing assets ratio increased to 9.13 per cent as against 9.04 per cent. Net NPAs stood at 2.72 per cent as against 2.35 per cent. Fresh slippages during the quarter were at Rs 2,732 crore.
Cash recovery stood at Rs 1,096 crore and upgradation was at Rs 955 crore. Provision Coverage Ratio (PCR) stood at 85.49 per cent as at end-December 2021.
Total provisions increased 11 per cent to Rs 2,598 crore from Rs 2,332 crore in the year-ago period. The bank has identified 34 accounts worth Rs 5,400 crore to be transferred to the National Asset Reconstruction Company Ltd (NARCL).
In the first phase, it will transfer 5 stressed accounts worth Rs 1,200 crore, Jain said.
Capital adequacy ratio at 15.47 per cent, increased by 141 basis points year-on-year.
Advances grew 3 per cent to Rs 4,00,432 crore and total deposits were higher 8 per cent at Rs 562,575 crore as of December 31, 2021.
Jain said the bank is looking at a credit growth of 8-10 per cent in the ongoing fiscal year.
The bank's scrip ended at Rs 158.65, down 5.82 per cent on BSE.
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