 "Indian Bank Q1 results: Net profit rises 41% to to Rs 1,850 crore")
Public sector lender Indian Bank has reported a 41 per cent rise in net profit to Rs 1,850 crore for the April-June quarter of the 2023-24 financial year, up from Rs 1,311 crore in the same period last year. The profit surge is largely attributable to a 26 per cent increase in net interest income (NII) during the quarter.
The total income of the Chennai-based bank also saw a 25 per cent increase during the quarter, rising to Rs 14,921 crore compared to Rs 11,898 crore in the same quarter of the 2022-23 fiscal year. "The profit increase was primarily driven by a rise in NII. Our total business also grew by 9 per cent during the quarter, spurred by a 13 per cent growth in advances," stated Shanti Lal Jain, the managing director and chief executive officer of Indian Bank. The bank's NII, the difference between interest earned and interest expended, stood at Rs 5,703 crore for the period, compared to Rs 4,534 crore at the end of June 2022.
The bank's gross non-performing assets (NPA) for the quarter under review stood at 5.47 per cent of gross advances, a decrease from 8.13 per cent in the corresponding period of the previous year. Similarly, the net NPA improved from 2.12 per cent at the end of June 2022 to 0.70 per cent as of June this year. The provision coverage ratio also improved to 95.10 per cent from 88.08 per cent at the end of June 2022. The bank's return on average assets increased to 0.95 per cent in the first quarter of FY24, up from 0.73 per cent in Q1 FY23. Its return on equity also increased to 17.88 per cent from 14.18 per cent in June 2022.
In Q1 FY24, the bank's total business grew by 9 per cent to Rs 11.01 trillion, up from Rs 10.09 trillion at the end of June 2022. The bank's advances increased by 13 per cent, from Rs 4.25 trillion in the April-June quarter of FY23 to Rs 4.79 trillion in Q1 FY24. Retail, agriculture and MSME (RAM) advances grew by 13 per cent to Rs 2.76 trillion during the quarter, with the RAM segment contributing approximately 61 per cent of the gross advances.