Public sector lender Indian Bank standalone net profit for the first quarter rose 3% to ₹1,213 crore over the year-earlier period on improved credit offtake, reduction in NPAs and stable NIM.
During the quarter, total income rose to ₹11,758 crore from ₹11,444 crore, net interest income grew 13% to ₹4,534 crore and non-interest income (excluding treasury income) up 38% to ₹1,736 crore, it said in a regulatory filing.
Fee based income grew 35% to ₹627 crore and net interest margin improved to 3.10% from 2.85%.
Total provision increased by 5% to ₹2,351 crore and operating expenses contracted by 7% to ₹2,574 crore.
Gross non-performing assets decreased by 156 bps to 8.13% and net NPAs by 135 bps to 2.12%. The provision coverage ratio improved to 88.08% (82%).
Total business recorded a year-on-year growth of 9% at ₹10,09,454 crore with deposits increased by 8% to ₹5,84,251 crore and advances by 9% to ₹4,25,203 crore.
Retail, Agriculture & MSME (RAM) grew by 12% to ₹2,44,247 crore. RAM sector grew by 14%, 13% and 8% respectively. RAM contribution to domestic advances is 61%. Housing loan grew by 11%, auto loan by 22%, personal loan by 32% and gold loan by 42%.
The bank had restructured 49,236 MSME accounts amounting to ₹3,280 crore. Besides, under the provisions of Insolvency and Bankruptcy Code, the bank was holding provision of ₹6,243 crore.
As the economy opens up after the pandemic, the demand for credit has risen and there is an indication of green shoots of the domestic economy, the bank said in a statement.
The bank is well equipped to meet the market expectations and the thrust is on corporates as well as the retail customers.
