Indian Bank on Wednesday posted a consolidated net profit of Rs 2909.73 crore in the third quarter of the financial year (Q3 FY25), up 32 per cent from the same time last year after improving asset quality and “efficiency parameters”.
The Chennai-based lender made Rs 2205.63 crore in consolidated net profit in Q3 FY24. Total income rose 11 per cent to Rs 18,167.54 crore in Q3 FY25, compared to Rs 16,315.35 crore the year before.
"In terms of asset quality and efficiency parameters, the bank has done really good. We have grown by 8 per cent and for the first time, the bank has crossed a business figure of Rs 12.5 trillion, which is an achievement in itself. Total business growth was 8 per cent, deposit was 7 per cent and advance growth was 10 per cent," said Binod Kumar, managing director and chief executive officer of the bank, in a media briefing.
Gross non-performing assets (NPA) decreased by 121 basis points (bps) to 3.26 per cent in December 2024, from 4.47 per cent in December 2024. Net NPA reduced by 32 bps to 0.21 per cent, from 0.53 per cent. "Our asset quality is one of the best in the industry," he said. Provision coverage ratio improved by 219 bps to 98.09 per cent in Q3 FY25, compared to 95.9 per cent during the same quarter in FY24. Slippage ratio improved by 50 bps to 0.78 per cent 1.28 per cent.
Indian Bank's operating profit improved by 16 per cent to Rs 4,749 crore in Q3 FY25, compared to Rs 4,097 crore the year-ago period. Net interest income increased by 10 per to Rs 6,415 crore from Rs 5,815 crore in Q3 FY24.
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Total deposits increased by 7 per cent to Rs 702,282, as against Rs 654,154 crore in the same quarter last year. Current, savings and CASA deposits grew by 5 per cent, 3.5 per cent, and 4 per cent, respectively.
Gross advances increased by 10 per cent to Rs 5,59,199 crore in December 2024 from Rs 5,09,800 crore in December 2023. RAM (retail, agriculture and MSME) advances grew by 13 per cent to Rs 334,739 crore in Q3 FY25, compared to Rs 296,845 crore in the same period last year. RAM contribution to gross domestic advances stood at 64.35 per cent. Retail, agriculture and MSME advances grew by 16 per cent, 13.5 per cent and 8 per cent. Home loans (including mortgage) grew by 12 per cent.
Domestic CASA ratio stood at 40 per cent as on Q3, while CD ratio stood at 79.63 per cent. Capital Adequacy Ratio improved by 34 bps to 15.92 per cent. Earnings Per Share increased by 26 per cent to Rs 84.70 in Q3 FY25, from Rs 67.12 the year-ago period.