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%.

(L-R) M.K.Bhattacharya, Executive Direcor, Padmaja Chunduru, Managing Director, 

V.V.Shenoy, Executive Director

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.