Profit companies

Indian Bank posts 4% rise in net profit to Rs 1,311 crore in Q1

The state-run Indian Bank reported a 4% increase in net profit for the first quarter of FY 2022-23 to Rs 1,311 crore from Rs 1,259 crore in the same period during the last financial year.

The bank’s total income in the April to June quarter 2022-2023 also increased by 3% to Rs 11,898 crore from Rs 11,553 crore a year ago. The bank’s operating profit for June 2022 increased by 4% to Rs 3,575 crore from Rs 3,435 crore in June 2021.

Gross non-performing assets decreased by 156 basis points (bps) to 8.13% of gross advances in June 2022, from 9.69% in the same period last year. Its net non-performing assets also declined by 135 basis points to 2.12% from 3.47% in June 2021. The non-performing assets provision coverage ratio improved by 608 basis points to 88, 08% in the first quarter of 2022-23 compared to 82% in the first quarter of 2021-22.

During the reporting period, net interest income increased by 13% to Rs 4,534 crore from Rs 3,995 crore in the same period last year. Non-interest income (excluding treasury income) increased by 37.67% to Rs 1,736 crore in June 2022 from Rs 1,261 crore in the same quarter of the prior year.

The deposit increased by 8% year-on-year and reached Rs 5,84,251 crore from April to June 2022. CASA also increased by 8%. Advances increased by 9% to Rs 4,25,203 crore in the quarter, from Rs 3,89,626 crore in June 2021.

“The bank’s core businesses have contributed to this growth. This is because our personal credit increased by 14%, home loans by 11%, auto loans by 22%, personal loans by 32% and gold loans by 42%. At the same time, CASA grew by 8%. So the result is an increase in NII and other income,” said