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Informist, Monday, Oct. 28, 2024

 

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--Indian Bank Jul-Sept net profit INR 27.06 bln 
--Indian Bank Jul-Sept net profit INR 27.06 bln vs INR 19.88 bln year ago 
--Analysts saw Indian Bank Jul-Sept net profit INR 24.85 bln
--Indian Bank Apr-Sept total income INR 347.14 bln vs INR 304.95 bln yr ago 
--Indian Bank provision coverage ratio 97.60% as on Sept 30 
--Indian Bank Apr-Sept net profit INR 51.10 bln vs INR 36.97 bln year ago 
--Indian Bank Basel III capital adequacy ratio 16.55% as on Sept 30 
--Indian Bank Jul-Sept NPA provisions INR 8.37 bln vs INR 9.18 bln year ago 
--Indian Bank net NPA ratio 0.27% as on Sept 30 vs 0.39% qtr ago 
--Indian Bank Jul-Sept provisions INR 10.99 bln vs INR 15.51 bln year ago 
--Indian Bank gross NPA ratio 3.48% as on Sept 30 vs 3.77% qtr ago 
--Indian Bank Jul-Sept total income INR 177.70 bln vs INR 157.36 bln yr ago
--Indian Bank credit-deposit ratio 79% as on Sept 30 
--Indian Bank domestic current, savings account ratio 40.47% as on Sept 30 
--Indian Bank total deposits INR 6.93 tln as on Sept 30, up 8% on yr 
--Indian Bank gross advances INR 5.51 tln as on Sept 30, up 12% on yr 
--Indian Bank Jul-Sept net interest income INR 61.94 bln, up 8% on year 
--Indian Bank Jul-Sept cost of deposits at 5.13% vs 5.05% qtr ago 
--Indian Bank Jul-Sept cost of funds at 5.22% vs 5.12% qtr ago 
--Indian Bank Jul-Sept fresh slippages INR 13.57 bln 
--Indian Bank Jul-Sept domestic NIM 3.49% vs 3.53% quarter ago 
--Indian Bank Jul-Sept net interest margin 3.39% vs 3.44% quarter ago 
 

 

By Pratiksha
 

NEW DELHI – Indian Bank's net profit for the quarter ended September rose 36.2% on year to INR 27.06 billion, primarily due to a sharp fall in provisions, the lender's quarterly results released Monday showed. The Chennai-based bank's net profit for Jul-Sept exceeded analysts' expectations.

 

The bank's net profit was seen rising 25.0% on year to INR 24.85 billion, according to the average of estimates from five brokerages. At 1525 IST, shares of the bank were 10.6% higher at INR 551.50 on the National Stock Exchange. 

 

Provisions, excluding tax, and contingencies fell 29.1% on year to INR 10.99 billion in Jul-Sept. Of these, provisions for non-performing assets fell 8.8% on year to INR 8.36 billion.

 

Also aiding the bottom line was an improvement in asset quality, with the gross non-performing asset ratio at 3.48% as of Sept. 30, against 3.77% at the end of the previous quarter. The net non-performing asset ratio of the bank was 0.27% as on Sept. 30, as compared to 0.39% as on Jun. 30. The bank recognised fresh slippages worth INR 13.57 billion in Jul-Sept. The lender's provision coverage ratio, including write-offs, rose to 97.60% from 96.66% a quarter ago.

 

The state-owned bank's total income for Jul-Sept was INR 177.70 billion, up 12.9% on year, which also boosted the bottom line. Of this, other income rose 21.5% on year to INR 24.22 billion. The bank's net interest income--the difference between interest earned and expended--rose 8% on year to INR 61.94 billion in the reported quarter. The net interest income was seen rising 9.2% on year to INR 62.68 billion in the quarter ended September, according to an average of estimates from the five brokerages. 

 

The cost of deposits jumped to 5.13% as on Sept. 30, up 8 bps on quarter and 34 bps on year, while the cost of funds rose to 5.22% as on Sept 30 from 5.12% at the end of the previous quarter. 

 

The lender's total advances rose 12% on year to INR 5.51 trillion as on Sept. 30. Within domestic loans, agricultural loans rose at the fastest pace, posting a year-on-year increase of 16% at INR 1.28 trillion. Corporate advances grew 9% on year to INR 1.88 trillion, while retail loans were up 15% at INR 1.10 trillion. As on Sept. 30, corporates comprised the biggest portion -- 37% -- of the lender's total domestic credit, followed by the agriculture sector. The net interest margin for the quarter was 3.39%, down 5 bps from 3.44% in Apr-Jun, and 7 bps from 3.46% from year ago. 

 

On the liability front, Indian Bank's deposits were up 8.0% on year at INR 6.93 trillion as on Sept. 30, with current deposits growing 8.0% to INR 361.58 billion and term deposits rising 10% on year to INR 4.24 trillion. The bank's current account, savings account ratio, however, edged lower to 40.47% from 40.56% at the end of the previous quarter and 41.37% a year ago.

 

The lender's credit-deposit ratio rose marginally to 79.44% as on Sept. 30, as compared to 79.15% as on Jun. 30, and 76.82% at the end of September 2023. The bank's Basel-III capital adequacy ratio was 16.55% as on Sept. 30. 

 

The bank's domestic net interest margin fell to 3.49% as on Sept. 30 from 3.53% at the end of the previous quarter. For Apr-Sept, the lender's net profit rose to INR 51.10 billion from INR 36.97 billion a year ago, while total revenue increased to INR 347.14 billion from INR 304.95 billion a year ago.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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