Indian Bank posts 75% jump in Net profit
Chennai, 5th August, 2019: Chennai
Headquartered Indian Bank posted a healthy Net profit of `365 Cr for June quarter compared to `209 Cr in the corresponding quarter last year recording an
increase of 75%. This was on the back of increase in other income by 58%. Bank’s RoA improved to 0.52% from 0.33%
during the year ago period and RoE improved from 5.25% to 9.06%. Domestic NIM
was at 2.85%.
Bank’s
total Business recorded a 14% increase and was at `4.26 lakh crore driven by a
healthy growth of 15% in Deposits and 12% in Advances which reached `2.41 lakh
crore and `1.84 lakh crore respectively. Loan book was well diversified with
RAM constituting 60% which witnessed a robust growth of 24% in Retail, 25% in
Agriculture and 10% in MSME sector YoY.
Accelerated
recovery and upgradation efforts witnessed progressive reduction in accretion
of fresh NPAs over the previous year. Fresh slippages during the quarter was `1035
Cr as against `1391Cr in the year ago period. Gross and Net NPA ratios are at 7.33%
and 3.84% respectively. Asset quality remained
stable with both slippage ratio at 2.47% (3.83%) and Credit cost at 1.04% (1.16%)
coming down as compared to that of the
previous year. There was a healthy
build up of Provision coverage ratio which at 66.34%, improved 196 bps YoY.
The
Bank remains well capitalized with CRAR of 13.62%. Capital
of `295.48 Cr was raised in May 2019 under Employees Stock Purchase Scheme
(ESPS).
