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Indian Bank has reported the financial results for merged entity post amalgamation of Allahabad Bank with effect from 1 April 2020 with the net profit of Rs 369 crore for the quarter ended June 2020.
The total income for the merged entity has increased 8% to Rs 11447 crore from Rs 10580 crore in Q1FY20. Net interest income grew by 17% to Rs 3874 crore as against Rs 3316 crore in Q1FY20. Other income increased by 19% to Rs 1327 crore as against Rs 1119 crore in Q1FY20.
Operating Profit grew by 23% to Rs 2753 crore for the Q1FY21 as against Rs 2234 crore for Q1FY20. Net Profit stood at Rs 369 crore as against Rs 492 crore for the combined entity in Q1FY20.
Net interest margin (NIM) (Domestic) was 2.83%, against 2.87% in Q1FY20. Cost-to-income ratio improved to 47.06% as against 49.63% for Q1FY20.
Asset quality improves: The bank has improved asset quality with dip in fresh slippages of loans in Q1FY2020.
- The fresh slippages of loans stood at Rs 606 crore in Q1FY2021, while the recovery, upgradations and write-off together were higher at Rs 2638 crore.
- GNPA improved to 10.90% from 12.09% as at June 2019. NNPA improved to 3.76% from 4.68% as at June 2019.
- Provision Coverage Ratio (PCR) improved to 80.52% as against 74.35% in Q1FY20. Excluding technical write off, it improved to 68.09% from 64.35%, as at June 2019.
- Credit cost was at 1.93% as against 1.84% of Q1FY20.
- Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 13.45% as against regulatory requirement of 10.875%. Tier 1 CAR was at 10.47% as against regulatory requirement of 8.875%.
| Asset Quality Indicators: Indian Bank |
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Jun-20$ |
Mar-20 |
Dec-19 |
Sep-19 |
Jun-19 |
Variation |
| QoQ |
YoY |
| Gross NPA (Rs Crore) |
39965.02 |
14175.88 |
13892.20 |
13980.74 |
13511.21 |
|
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| Net NPA (Rs Crore) |
12754.74 |
6184.24 |
6487.59 |
6613.47 |
6824.24 |
|
|
| % Gross NPA |
10.90 |
6.88 |
7.21 |
7.20 |
7.33 |
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| % Net NPA |
3.76 |
3.13 |
3.50 |
3.54 |
3.84 |
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|
| % Provision Coverage Ratio |
80.52 |
73.05 |
70.84 |
68.06 |
66.34 |
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|
| % CRAR - Basel III |
13.45 |
14.12 |
15.00 |
14.52 |
13.62 |
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| Tier I - Basel III % |
10.30 |
12.08 |
13.12 |
12.69 |
11.72 |
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Variation in basis points for figures given in percentages and in % for figures in Rs crore
$ figures relates to merged entity and not compared with earlier periods. |
Business highlights:
Global Business increased by 7% to Rs 855895 crore with Global Deposits rising Rs 489109 crore and Global Advance moving up 5% to Rs 366787 crore end June 2020.
Current Deposits grew by 7% to Rs 24152 crore and Savings Deposits by 12% to Rs 178954 crore. Domestic CASA deposits recorded a growth of 11% with CASA share at 42% as against 40% in Q1FY20.
Gross domestic advances grew by 6% to Rs 357869 crore end June 2020. Advances growth was driven by retail loans rising 11% YoY to Rs 60529 crore at end June 2020, while credit to agriculture increased 3% to Rs 68773 crore and and MSME 3% to Rs 60590 crore at end June 2020. The corporate credit has increased 6% to Rs 167977 crore end June 2020. Overseas advances witnessed a de-growth of 14%.
Priority Sector portfolio reached Rs 138786 crore and as percentage of ANBC stood at 43.78% as against regulatory requirement of 40%.
Investment book of the bank increased 16% YoY to Rs 163420 crore at end June 2020. The AFS book jumped 42% to Rs 67259 crore, while HTM book rose 3% to Rs 96043 crore at end June 2020. The duration of the overall investment portfolio stood at 3.62 years end June 2020 compared with 3.81 years at end June 2019.
The bank has network of 6062 branches and 4816 ATM's end June 2020.
Book value of the bank stood at Rs 245.2 per share at end June 2020, while the adjusted book value (net of NNPA) was Rs 229.7 per share at end June 2020.
Financial Performance FY2020:
Bank has posted 134% increase in net profit to Rs 753.36 crore in the year half year ended March 2020 (FY2020). The net interest income increased 8% to Rs 7606.42 crore, while non-interest income moved up 76% to Rs 3312.46 crore, pushing up net total income by 23% to Rs 10918.88 crore in FY2020. The operating expenses increased 10% to Rs 4420.84 crore, while provision and contingencies galloped 12% to Rs 5125.31 crore, allowing profit before tax to increase 383% to Rs 1372.73 crore in FY2020. The cost-to-income ratio improved to 40.5% in FY2020 compared to 45.2% in FY2019. After tax provision of Rs 619.37 crore, net profit has increased 134% to Rs 753.36 crore in FY2020.
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