Net interest income rose 15% to ₹4,684 crore while fee-based income climbed 18% to ₹723 crore
Net interest income rose 15% to ₹4,684 crore while fee-based income climbed 18% to ₹723 crore
Indian Bank standalone net profit for the second quarter rose 12% to ₹1,225 crore on recovery of bad debts, lower provisions, improvement in asset quality and an increase in fee-based income.
“We are firing on all cylinders,” MD and CEO Shanti Lal Jain said. “Operating profit has grown by 11% and net profit by 12%. Cash recovery is ₹876 crore more than slippages.”
Stating that they were expecting credit growth to in the region of 12-13% for the fiscal, he said, Retail, Agri , MSME (RAM) sector disbursements would be more than 60%.
Net interest income rose 15% to ₹4,684 crore while fee-based income climbed 18% to ₹723 crore. Net interest margin increased to 3.20% from 2.89%. Non-interest income declined by 7% to ₹1,828 crore, the public sector lender said in a filing.
Provisions and contingencies declined to ₹2,059 crore from ₹2,547 crore, while provision coverage ratio increased from 88.08% to 91.08%.
Gross NPAs declined to 7.30% from 9.56%, while net NPAs to 1.50% from 3.26%. Capital Adequacy Ratio stood at 16.15%. TSlippages contracted from ₹3,952 crore to ₹2,379 crore.
Total business of the bank rose 10% to ₹10,26,801 crore, of which deposits accounted for ₹5,888,60 crore, an increase of 7%.
RAM sector advances grew by 14%, 15% and 9% respectively. RAM contribution to domestic advances is 62%. Home loans (including mortgage) grew by 11%, auto loans by 28%, personal loans by 26% and gold loans by 19%.
Current account saving account (CASA) deposits recorded a growth of 7% and stood at ₹2,41,078 crore. The share of CASA to deposits stood at 41%. Priority sector lending amount to ₹1,58,187 crore.
