Indian Bank Q1 net rises 41% to ₹1,709 cr. on net interest income, other income and improvement in asset quality

Indian Bank has been growing in a balanced way in all the parameters, says Managing Director and Chief Executive Officer Shanti Lal Jain.

Indian Bank reported standalone net profit for the June quarter rose 41% year-on-year to ₹1,709 crore on account of an increase in net interest income, other income and improvement in asset quality.

Total income rose to ₹14,759 crore from ₹11,758 crore, net interest income grew 26% to ₹5,703 crore and non-interest income up 7% to ₹1,710 crore. Fee based income rose 7% to ₹671 crore and net interest margin improved to 3.61% from 3.10%.

“The bank has been growing in a balanced way in all the parameters,” MD & CEO Shanti Lal Jain told the media.

Gross non-performing assets decreased by 266 bps to 5.47% and net NPAs by 142 bps to 0.70%. The provision coverage ratio improved to 95.10% (88.08%).

“The bank’s cash recovery have been more than the slippages for the past few quarters. In Q1, it was ₹2,008 crore against slippage of ₹1,753 crore. We have said that the cash recovery will be ₹8,000 crore for FY24 and we have already done ₹2,008 in Q1,” he said.

Total business grew 9% to ₹11,00,943 crore with deposits accounting for ₹6,21,539 crore and advances ₹4,79,404 crore. Current Account Savings Account grew by 5% to ₹2,50,242 crore.

“Last year, we said that our credit growth will be in the range of 10-12%, but we ended with 13%. This year too, we are expecting to grow in the 10-12% range,” he said.

Retail, Agriculture & MSME (RAM) advances grew by 13% to ₹2,76,435 crore. Retail and agri grew by 16% each and MSME by 7%.

RAM contribution to domestic advances is 61%. Housing loan grew by 14%, auto loan by 29% and personal loan by 52%.

“We will maintain RAM and Corporate sector advances in the ratio of 60:40,” he said

The bank’s capital adequacy ratio slid to 15.78% from 16.51% in the year-earlier period.