Indian Bank posts 75% jump in Net profit

Chennai, 5^th 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).