Indian Bank Q1 standalone net rises 41% to ₹2,403 cr.
The Hindu
Indian Bank's Q1 net profit up 41% to ₹2,403 crore, with growth in income, asset quality, and business segments.
Indian Bank reported standalone net profit for the June quarter rose 41% year-on-year to ₹2,403 crore on account of an increase in net interest income, other income and improvement in asset quality.
Total income rose to ₹16,945 crore from ₹14,759 crore, net interest income grew by 8% to ₹6,178 crore, and non-interest income rose 11% to ₹1,906 crore. Fee-based income rose 17% to ₹788 crore, while net interest margin slid to 3.53% from 3.61%.
Gross non-performing assets decreased by 170 bps to 3.77% and net NPAs slid by 31 bps to 0.39%. Slippage ratio was contained to 1.5% from 1.57%.
The bank’s capital adequacy ratio rose to 16.47% from 15.78%. The provision coverage ratio stood at 96.66% (95.10%). Provisions contracted to ₹1,259 crore from ₹1,741 crore.
“The bank is maintaining collection efficiency of 95%. Slippage was ₹1,928 crore, of which ₹900 crore came from MSMEs, ₹600 crore from agri and ₹400 crore from retail. In agri, slippages came mainly from farm loans. We also recovered ₹300 crore. But the recovery was ₹1,937 crore,” said MD & CEO Shantil Lal Jain.
Total business grew 11% to ₹12.20 lakh crore, with deposits accounting for ₹6.81 lakh crore and advances ₹5.39 lakh crore. Current account savings account grew 6% to ₹2.66 lakh crore.
Retail, Agriculture & MSME (RAM) advances grew by 13% to ₹3.13 lakh crore. Retail, agri and MSME grew by 14%, 18% and 6% respectively. Corporate advances accounted for 38% of total advances grew by 9% to ₹1.89 lakh crore.
Governor Thaawarchand Gehlot has sought a report from the State government on a complaint that the Mysuru Urban Development Authority (MUDA) had taken up works amounting to ₹387 crore in violation of rules in Varuna and Srirangapatna Assembly constituencies, allegedly on Chief Minister Siddaramaiah’s oral instructions.
“We are organising a health research convention, which comprises a couple of workshops, community-based learning, and also cardiac care. We also included a one-day seminar on medical education, how medical education has evolved in India and the U.K., and what we can learn from each other” said Dr. Piruthivi Sukumar Dean of the International Faculty of Medicine & Health, University of Leeds during his interaction with The Hindu.