Indian Bank conducted a conference call on 27 July 2023 to discuss its financial results for the quarter ended June 2023. Shanti Lal Jain, MD&CEO of the bank addressed the call:

Highlights:

The business of the bank has crossed Rs 11 lakh crore in quarter ended June 2023. The advances have increased by 13% driven by retail agriculture and MSME sector growing by 13%. Retail loan growth is strong at 16% and agriculture at 16%, while MSME grew 7%. The corporate book has expanded by 12%.

Including write offs the loan growth is higher at 15.5% end June 2023.

The housing loan growth was strong at 14% and auto loan grew 29% and personal loan surged 52%.

Within the agriculture, the gold loan book expanded 20% end June 2023.

The loan mix between retail and corporate books stands at 61-39 end June 2023.

The bank has given guidance of 8 to 10% growth in deposits. Deposits have increased by 6% with retail deposits rising 7%.

The bank has given credit growth guidance of 10 to 12%.

The bank is targeting to reduce gross NPA ratio below 5% by March 2024. The net NPA ratio is declined below the guidance of 0.9% for March 2024 at 0.7% end June 2023

The bank has guided at recoveries of Rs 8000 crore for FY2024 and recoveries have been at Rs 2000 crore in Q1FY2024

The benefit of carry forward of losses was available till last year with the exit of the benefit the full tax rate as applied from FY2024.

There is slide decline in the capital adequacy ratio due to increase in the operational risk and a market risk.

The segment wise slippages for retail were at Rs 430 crore, Rs 320 crore in agriculture, Rs 780 crore in MSME, and Rs 230 crore in corporate book. 

In the corporator segment one account with exposure of Rs 192 crore slipped during quarter

The bank has provision on standard restructured book to 25%.

The income on PSLCs is booked on accrual basis in FY2024.

The bank has spent Rs 1500 crore for digital capex during last 3 years and the digital capex budget stands Rs 575 for FY2024.

The excess SLR investment stands at Rs 35000 crore, while the LCR of the bank stands at 131%. 

The bank expects to maintain credit deposit ratio at 77-78%.

The bank aims to maintain cost to income ratio at current level of 44% with the branch expansion.