Indian Bank Q3 Result: Net profit rise 34% to Rs 690 crore

Kolkata: Indian Bank reported a 34 per cent year-on-year (YoY) rise in net profit at Rs 690 crore for the December quarter, despite a 21 per cent growth in provisions and contingencies. Net profit was Rs 514 crore in the year-ago period.

The bank saw a 30 per cent rise in earnings from treasury operations, unlike most of its peers, helping its profit numbers.

Its net interest margin from domestic operation was at 3.03 per cent for the December quarter against 2.89 per cent for the preceding quarter. The NIM was 3.13 per cent in the year-ago period.

The bank's operating profit rose 16 per cent to Rs 3,288 crore for the quarter against Rs 2,846 crore in the year-ago period. Net interest income was at Rs 4,395 crore compared with Rs 4,314 crore over the same period. The bank set aside Rs 2,493 crore for provisions and contingencies in the quarter under review against Rs 2,061 crore it did earlier.

Its gross non-performing assets ratio stood at 9.13 per cent at the end of December as against 9.56 per cent three months prior to that. Net NPA was at 2.72 per cent against 3.26 per cent.

It saw fresh slippages of Rs 2,732 crore while cash recovery from bad loans was Rs 1,096 crore. The company plans to transfer five NPA accounts totalling Rs 1300 crore into the bad bank initially, managing director Shanti Lal Jain said.

He is expecting the bank to achieve an 8 per cent rise in advances for FY21 even as its advances growth so far remained muted at 3 per cent YoY at Rs 4 lakh crore.