Analyst Concall
Indian Bank expects credit cost to come down considerably
This story was originally published at 21:09 IST on 28 October 2024
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--Indian Bank: Expect credit cost to come down considerably
--Indian Bank: Miscellaneous income up on penal charges
--CONTEXT:Comments by Indian Bk management in post-earnings conference call
By Pratiksha
NEW DELHI – After posting a fall in credit cost in Jul-Sept, Indian Bank expects credit cost to come down considerably going ahead as well, the lender's management said in a post-earnings conference call Monday.
"The credit cost is coming down because the net NPA itself is coming down. Naturally, the credit cost will further come down. By how much it will come down will depend on the further slippages in small accounts. But definitely, the credit cost will come down considerably," it said.
The lender's credit cost fell to 0.65% as of Sept. 30, compared with 0.79% at the end of September 2023. The Chennai-based bank's gross non-performing asset ratio fell to 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.
Further, when asked about the reason behind the rise in the lender's miscellaneous income in Jul-Sept, the management attributed it to penal charges. Indian Bank's miscellaneous income jumped a whopping 130% on year to INR 2.28 billion in the quarter ended September.
The lender's management does not see any stress in its retail loan book. The state-owned bank's total advances rose 12% on year to INR 5.51 trillion as of Sept. 30. Of this, retail loans were up 15% on year at INR 1.10 trillion.
In its quarterly results released on Monday, Indian Bank's net profit jumped 36.2% on year to INR 27.06 billion in the quarter ended September. On Monday, shares of the bank ended 10.6% higher at INR 551.45 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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