Indian Bank reported standalone net profit for the quarter ended March rose by 47% from the year-earlier period to ₹1,447 crore on account of an increase in interest income, reduction in provisions and improvement in asset quality.
“We exceeded in all the parameters set by the Reserve Bank, said MD and CEO S.L. Jain during an interaction. “Our recovery was more than the slippages and we recovered ₹8,500 crore.”
“Going forward, our focus is on delivering value-added and suitable solutions through the acumen of empowered employees and smart use of technology,” he said.
Interest earned rose 45% to ₹12,244 crore. Net interest income increased to ₹5,508 crore from ₹4,255 crore. Net interest margin grew to 3.59% from 2.87%.
Gross non-performing asset (NPA) declined by 252 bps to 5.95%, while that of net NPA by 137 bps to 0.90%. Provision coverage ratio improved by 644 bps to 93.82%. Capital adequacy ratio stood at 16.49%.
RAM (Retail, Agriculture & MSME) advances grew by 12% to ₹2.73 lakh crore. RAM contribution to gross domestic advances is 61%. Retail, Agri & MSME advances grew by 13%, 6% and 7% YoY respectively. Home loan (Including mortgage) grew by 11%, auto loan by 28% and personal loan by 46%.
Total business grew by 8% (₹10.95 lakh crore) of which deposit increased by 5% (₹6.21 lakh crore) and advances by 14% (₹4.74 lakh crore). The share of CASA to deposits stood at 42%.
The board recommended a dividend of ₹8.60 per share.
Mr. Jain said during FY23 the bank did not go in for any capital raise since the profit was adequate to cover the growth needs. However, for FY24, it was decided to raise up to ₹7,000 crore through various modes depending upon the need.
“Last year, we recovered ₹8,500 crore and this fiscal also, we have set similar target. We have set ourselves 8-10% growth in deposits and 10-12% in credit,” he said.
Indian Bank has already started doing rupee trading with three banks in Sri Lanka. It is in talks with banks in Russia, he added.
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