Indian Bank net profit jumps 12 per cent; NII increase 14 per cent

Indian bank's net profit increased by 12% to Rs 1,225 crores in the September quarter of 2022, led by strong lending especially in the Retail, agriculture and MSME sector (RAM) and a good recovery. Operating profit of the bank has jumped 11% in the quarter on a yearly basis and the key indicator of a lender's performance- net interest income (NII) has increased by 15% (YoY) from Rs 4084 crores to Rs 4684 crores.

NII increased by 14%, return on equity stood at 14% and cost to income ratio stood at 43,14% in the first half of the current financial year (H1).

Total Business recorded a year-on-year growth of 10% reaching the level of Rs 10,26,801 crore in September 2022 as against Rs 9,37,202 crore in September 2021. It stood at Rs 10,09,454 crore in June 2022. Advances grew by 14% to Rs 4,37,941 Crore in September 2022 over Rs 3,85,730 Crore a year ago.

The advances to the RAM sector grew by 13% in the quarter, contributing 62% of the domestic advances. Retail, Agri, MSME advances grew by 14%, 15% and 9% YoY respectively.

Home loans grew by 11%, Auto loans by 28%, personal loans by 26% and gold loans increased by 19%. Deposits in the public sector lender increased 7% year-on-year to Rs 5,88,860 Crore at the end of September 2022 quarter.

CASA grew by 7% (YoY) driven by 9% year-on-year growth in Current accounts and 7% Y-o-Y growth in savings bank accounts. CASA ratio for the bank stood at 41% at the end of September quarter.

Fresh slippages in the September quarter touched Rs 2,379 crores and the recovery stood at Rs 3,255 crores, so recovery is Rs 900 crores more than slippage, as the result our gross and net non-performing assets (NPA) has come down, SL Jain, Managing Director and Chief Executive Officer of Indian Bank told press persons. Slippages stood at R 4,356 crores and recovery stood at Rs 4,438 crores in H1.  

The bank has improved its mobile banking experience with the launch of new applications and also witnessed a 300% increase in online banking services on a yearly basis.

Indian Bank has 5728 domestic branches, out of which 1940 are Rural, 1496 are Semi-urban, 1157 are Urban & 1135 are in Metro category and 3 overseas branches. The Bank has 4825 ATMs & BNAs and 10256 number of BCs.