More Stories

Informist, Wednesday, Jan. 29, 2025

--Indian Bank Oct-Dec NIM 3.57% vs 3.49% in Jul-Sept 

--Indian Bank: Domestic CASA ratio at 40% as on Dec 31 

--Indian Bank total deposits INR 7.02 tln as on Dec 31, up 7% YoY 

--Indian Bank gross advances INR 5.59 tln as on Dec 31, up 10% YoY 

--Indian Bank Oct-Dec net interest income INR 64.15 bln, up 10% YoY 

--Indian Bk: Made extra provisions of INR 5.47 bln on standard assets Oct-Dec 
--Indian Bank provision coverage ratio 98.09% as on Dec 31 
--Indian Bank Basel III capital adequacy ratio 15.92% as on Dec 31 
--Indian Bank: Net NPA ratio 0.21% as on Dec 31 vs 0.27% qtr ago 
--Indian Bank: Gross NPA ratio 3.26% as on Dec 31 vs 3.48% qtr ago 

 --Indian Bk Oct-Dec technical write-offs INR 9.46 bln vs INR 20.42 bln yr ago 

--Indian Bk Oct-Dec recovery, upgrades INR 8.23 bln vs INR 11.43 bln yr ago 

--Indian Bank Oct-Dec fresh slippages INR 10.04 bln vs INR 14.29 bln yr ago 

--Indian Bank Oct-Dec cost of deposits 5.18% vs 5.13% in Jul-Sept 

--Indian Bank Oct-Dec provisions INR 10.59 bln vs INR 13.49 bln year ago 
--Indian Bank Oct-Dec total income INR 179.12 bln vs INR 160.99 bln year ago 
--Indian Bank Oct-Dec net profit INR 28.52 bln vs INR 21.19 bln year ago 
--Analysts saw Indian Bank Oct-Dec net profit INR 25.41 bln 
--Indian Bank Oct-Dec net profit INR 28.52 bln 
 

By Pratiksha

NEW DELHI - Indian Bank's net profit for the quarter ended December rose 34.6% on year to INR 28.52 billion, primarily due to a fall in provisions and improvement in asset quality, the lender's quarterly results released Wednesday showed. 

The Chennai-based bank's net profit for Oct-Dec exceeded analysts' expectations. The bank's net profit was seen rising 19.9% on year to INR 25.41 billion for the quarter, according to an average of estimates of four brokerages. On Wednesday, shares of the bank closed 6% higher at INR 544.75 on the National Stock Exchange. 

Provisions, excluding tax, and contingencies fell 21.5% on year to INR 10.59 billion in Oct-Dec. Of these, provisions for non-performing assets fell 32.5% on year to INR 6.11 billion. During the December quarter, the bank made incremental provision of INR 5.47 billion on standard assets over and above the minimum regulatory requirement.

Also aiding the bottom line was an improvement in the bank's asset quality, with the gross non-performing asset ratio falling to 3.26% as of Dec. 31, against 3.48% at the end of the previous quarter, and 4.47% at the end of December 2023. The net non-performing asset ratio of the bank was 0.21% as on Dec. 31, as compared to 0.27% as on Sept. 30, and 0.53% as on Dec. 31, 2023.

The bank's provision coverage ratio, including write-offs, rose to 98.09% as of Dec. 31 from 97.60% at the end of the previous quarter and 95.90% at the end of December 2023. The bank recognised fresh slippages worth INR 10.04 billion in Oct-Dec, against INR 14.29 billion a year ago. 

The lender's cash recoveries and upgrades were at INR 8.23 billion in Oct-Dec compared to INR 10.85 billion in Jul-Sept and INR 11.43 billion a year ago. Technical write-offs in the reported quarter were at INR 9.46 billion compared to INR 20.42 billion a year ago and INR 13.01 billion a quarter ago. 

The state-owned bank's total income for the reporting quarter was INR 179.12 billion, up 11.3% on year, which also boosted the bottom line. Of this, other income rose 13.2% on year to INR 21.53 billion. The bank's net interest income--the difference between interest earned and expended--rose 10.3% on year to INR 64.15 billion in the reported quarter. The net interest income was seen rising 8.4% on year to INR 63.02 billion in the quarter ended December, according to the average of estimates of four brokerages.

As is the trend with Indian Bank, advances continued to outpace deposits. The lender's gross advances rose 9.7% on year to INR 5.59 trillion as on Dec. 31. Within domestic loans, retail loans rose at the fastest pace, posting a year-on-year increase of 15.8% at INR 1.15 trillion. Agricultural advances grew 13.5% on year to INR 1.30 trillion, while micro, small and medium enterprise loans rose 8.2% to INR 900.05 billion. As on Dec. 31, corporates comprised the biggest portion of the lender's total domestic credit at 37%, followed by the agriculture sector, which made up 25% of the total loan book. 

The bank's net interest margin rose to 3.45% in Oct-Dec from 3.39% in Jul-Sept and 3.41% a year ago. Its domestic net interest margin for the quarter was 3.57%, up 8 basis points from both quarter and a year ago. 

Indian Bank's total deposits rose 7.4% on year to INR 7.02 trillion as on Dec. 31, with current deposits growing 5.3% on year to INR 355.99 billion and savings deposits rising 3.5% to INR 2.34 trillion. The bank's domestic current account, savings account ratio, however, edged lower to 40.0% as of Dec. 31 from 40.47% at the end of previous quarter and 41.14% at end of December 2023.

"We will focus on achieving compliant, sustainable and inclusive growth, with a clear emphasis on customer service, CASA (current account, savings account), MSME (micro, small and medium enterprises) and continued digital transformation," the lender said in a press release.

The cost of deposits jumped to 5.18% as on Dec. 31, up 5 bps on quarter and 19 bps on year, while the cost of funds rose to 5.27% as on Dec. 31 from 5.22% at the end of the previous quarter and 5.09% as on Dec. 31, 2023. The lender's credit-deposit ratio rose marginally to 79.63% as on Dec. 31, as compared to 79.44% as on Sept. 30, and 77.93% at the end of December 2023. The bank's Basel-III capital adequacy ratio was 15.92% as on Dec. 31. 

For Apr-Dec, the lender's net profit rose to INR 79.62 billion from INR 58.16 billion a year ago, while total revenue increased to INR 526.26 billion from INR 465.94 billion a year ago.  End

Edited by Vandana Hingorani

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.