Public sector lender Indian Bank has reported a net profit of ₹984 crore for the quarter ended March 31, 2022, when compared with ₹1,709 crore in the year-ago quarter. In Q4 FY21, net profit includes deferred tax adjustment (DTA) of ₹913 crore (for the entire FY21). In FY22, DTA adjustments are spread over four quarters.
Profit before tax for the March 2022 quarter grew marginally by 3 per cent at ₹823 crore as against ₹796 crore in the year-ago quarter, on the back of a 20 per cent increase in provisions which stood at ₹1,915 crore as against ₹1,589 crore.
The operating profit of the Chennai-headquartered Indian Bank grew 15 per cent to ₹2,738 crore (from ₹2,385 crore). Net interest income reported strong growth of 28 per cent at ₹4,255 crore (as against ₹3,334 crore), supported by a combination of factors such strong growth in interest income, rise in other interest incomes etc, said Shanti Lal Jain, MD & CEO of Indian Bank.
Interest income
Interest income grew 10 per cent to ₹9,838 crore (₹8,904 crore in Q4 of FY21), while non-interest income was marginally down by just a percentage point at ₹1,573 crore (₹1,581 crore).
Jain said fresh slippages in the March 2022 quarter were at about ₹3,300 crore, of which ₹973 crore was in the corporate category, including ₹890 crore of a textile organisation in Tamil Nadu.
Gross NPA
Gross NPA was lower at 8.47 per cent in March 2022 quarter as compared to 9.14 per cent in December 2021 quarter and 9.85 per cent in March 2021 quarter. Net NPA was at 2.27 per cent, down from 2.72 per cent in December 2021 quarter, and 3.37 per cent in the year-ago quarter.
For the full year ended March 31, 2022, the bank’s total business crossed ₹10 lakh crore and stood at ₹10.1 lakh crore, up 9 per cent. Its net profit grew by 31 per cent to ₹3,945 crore (₹3,005 crore) in FY21. Its operating profit grew 16 per cent to ₹12,717 crore (₹10,967 crore). Total income stood at ₹45,771 crore (₹44,756 crore in FY21). Net interest income grew 7 per cent at ₹16,728 crore (as against ₹15,666 crore), while non-interest income grew 22 per cent at ₹6,915 crore (₹5,650 crore). Provisions were higher at ₹9,513 crore as compared to ₹8,061 crore.
Domestic advances grew 4 per cent to ₹3,95,698 crore (₹3,79,537 crore in FY21). Retail, Agriculture and MSME (RAM) loans grew by 15 per cent (at ₹80,433 crore), 12 per cent (at ₹88,100 crore) and 6 per cent (at ₹74,167 crore) respectively. The three segments accounted for 61.3 per cent of gross domestic advances.
“RAM segment continues to post strong growth, while we also see a quarterly increase in corporate loan book,” said Jain
Total deposits grew 10 per cent to ₹5,93,618 crore (₹5,38,071 crore in FY21). CASA grew 9 per cent and had a 41.77 per cent share. The Board has recommended a dividend of ₹6.50 per equity share (65 per cent).