Indian Bank posts Strong Growth for FY 2019
Asset Quality and
Capital Adequacy Improve
Chennai, May, 2019: Indian
Bank posted strong growth in FY 2018-19 with Global Business witnessing a 16%
jump over last year to Rs. 4.29 lakh crores. Deposits grew by 16% to Rs. 2.42
lakh crores and Advances by 15% to Rs. 1.87 lakh crores. The Advances portfolio
was driven by 18% increase in RAM (Retail-Agri-MSME) lending and 12% increase
in Corporate lending. Further, the overall loan book continued to be
well-diversified with a 58% skew towards the RAM Sector.
Bank remained diligent
in pursuing operational efficiency and clocked a 12% Y-o-Y increase in Net
Interest Income, with Domestic NIM at 3%.
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(L-R)
M.K.Bhattacharya, Executive Direcor, Padmaja Chunduru, Managing Director,
V.V.Shenoy, Executive Director
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Bank’s CRAR at
13.21% was higher by 66 bps Y-o-Y. Its well-capitalized base has been further
augmented by the recently- launched ESPS (Employee Stock Purchase Scheme) which
has been successfully completed with widespread employee participation.
The healthy growth
in the Loan Book was supplemented by improved Asset Quality which was
underlined by the Gross NPA at 7.11% and Net NPA at 3.75%, down by 26 bps and 6
bps Y-o-Y respectively. The improvement in Asset Quality is more pronounced in
Q4 with reduction in Gross NPA by 35 bps and Net NPA by 68 bps. Fresh slippages
were also contained and came down significantly in the quarter (Rs. 1005 crores
in Q4 as against Rs. 1674 crores in Q3).
In its core
geographies of five southern states and UT of Puducherry, Bank continued to
lead from the front; it also holds the distinction of being the Exclusive Banker
in these States and UT for government schemes.
