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Results
29-Oct-21
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Analysis
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Indian Bank
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Strong profitability, but restructuring jumps
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Indian Bank has posted
strong 164% surge in the Net Profit to Rs 1089 crore in the quarter ended September
2021 (Q2FY2022) with 11% growth in the operating profit Rs 3276 crore.
The Bank’s Net Interest Income
(NII) declined 1% yoy and rose 2% qoq to Rs 4084 crore in Q2FY22 from Rs 4144
crore in Q2FY21. Net Interest Margin (NIM) (Domestic) improved by 4 basis
points (bps) on qoq sequential basis. It stood at 2.89% for Q2FY22 as against 3.06%
for Q2FY21.
Non- Interest Income increased
26% and 8% qoq to Rs 1966 crore as against Rs 1558 crore in Q2FY21 on account
of increase in recovery of bad debts (450%) and Forex income (42%).
Net Revenues (Net interest
income plus other income) for Q2FY22 grew by 6% to Rs 6050 crore from Rs 5702
crore for Q2FY21. It was Rs 5815 crore in previous quarter.
Cost-to-Income Ratio stood
at 45.85% in Q2FY22 as against 48.41% in Q2FY21 and 41.26% in Q1FY22. Due to
higher contribution for employees, the ratio increased on qoq basis.
Operating Expenses increased
by 1% to Rs 2774 crore in Q2FY22 as against Rs 2760 crore in the corresponding
quarter of FY21. In Operating expenses there was growth of 1% sequentially due
to provisioning on account of pension.
Provisions &
Contingencies for Q2FY22 were at Rs 2187 crore as against Rs 2530 crore for the
corresponding quarter of previous year and Rs 2234 crore in Q1FY22.
Return on Equity (RoE) for
Q2FY22 was 13.31% as against 5.88% as on Q2FY21. Return on Average Assets (RoA)
was at 0.69% for Q2FY22 as against 0.28% in Q2FY21. There is an improvement of 41
basis points from the corresponding quarter of the previous financial year.
Asset
quality improves
GNPA was at 9.56% of Gross
Advances as on Sep’21 brought down by 33 bps and 13 bps qoq. The Net NPA ratio
stood at 3.26% at 30th Sep’21 as against 2.96% in Sep’20. It was at 3.47% end
June 2021.
Fresh slippages were lesser
at 3952 crore compared to 4204 crore in Q1. Cash recovery was higher at 831
crore during Q2 and AUC recovery was higher at 775 crore compared to Q1. Fresh
slippage was high due to corporate loans and crop loans.
The restructured loan book
of the bank has increased to Rs 19221 crore end September 2021 from Rs 11837
crore end June 2021.
For Q2FY22, Bank’s total
Capital Adequacy Ratio (CRAR) was at 15.88%, increased by 224 bps YoY. On a
sequential quarter basis, it decreased by 4 bps from 15.92% in Q1FY22 due to
call up option exercised by Bank for Tier II Bond.
Tier-I croreAR was at 12.34%
in Q2FY22 against 10.74% in Q2FY21, up by 160 bps YoY. On a sequential quarter
basis, it increased by 12 bps from 12.22% in Q1FY22.
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Asset Quality
Indicators: Indian Bank
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Sep-21
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Jun-21
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Mar-21
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Dec-20
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Sep-20
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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36886.07
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37759.18
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38455.35
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35237.24
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36197.97
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-2
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-4
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2
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Net NPA (Rs Crore)
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11749.17
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12652.87
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12271.13
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8537.48
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10052.22
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-7
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-4
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17
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% Gross NPA
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9.56
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9.69
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9.85
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9.04
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9.89
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-13
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-29
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-33
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% Net NPA
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3.26
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3.47
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3.37
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2.35
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2.96
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-21
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-11
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30
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% Provision Coverage
Ratio
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83.32
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82.00
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82.12
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86.51
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84.39
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132
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120
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-107
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% CRAR - Basel III
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15.88
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15.92
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15.71
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14.06
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13.64
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-4
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17
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224
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Tier I - Basel III %
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12.34
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12.22
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11.93
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11.18
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10.74
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12
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41
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160
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business
performance
Advances grew by 5% to Rs 385730
crore in Q2FY22 from Rs 365896 crore a year ago, primarily driven by growth in
RAM sector (13%) of which growth in Retail, Agriculture and MSME was 14%, 16% and
8% respectively. The Bank has focused on capital light growth in core credit.
Total Deposits grew by 10% and
2% qoq and stood at Rs 551472 crore in Sep’21 as against Rs 501956 crore in
Sep’20.
CASA Deposits grew by 8% and
by 2% qoq and touched Rs 225309 crore in Q2FY22. Share of CASA to Total
Deposits stood at 41% in Q2FY22. Current account deposits grew by 14% and
Savings account deposits by 8% in Q2FY22.
Total Business recorded growth
of 8% reaching the level of Rs 937202 crore in Sep’21 as against Rs 867852
crore in Sep’20. On a sequential qoq basis it increased by 1%.
Priority Sector portfolio increased
to Rs 141906 crore in Sep’21 from Rs 138244 crore in same quarter of the
previous year. Priority sector advances as a percentage of ANBC stood at 44% as
against the regulatory requirement of 40%.
RAM constitutes 60% of the
total advances.
Book value of the bank stood at Rs
293.7 per share at end September 2021, while the adjusted book value (net of
NNPA and 10% of restructured advances) was Rs 160.8 per share at end September 2021.
Financial
Performance H1FY2022:
Bank has posted 191% increase
in net profit to Rs 2270.84 crore in the year half year ended September 2021
(H1FY2022). The net interest income increased 1% to Rs 8077.65 crore, while non-interest
income moved up 29% to Rs 3786.59 crore, pushing up net total income by 8% to
Rs 11864.24 crore in H1FY2022. The operating expenses declined -1% to Rs 5172.89
crore, while provision and contingencies galloped 16% to Rs 5105.73 crore, allowing
profit before tax to increase 20% to Rs 1585.63 crore in H1FY2022. The
cost-to-income ratio improved to 43.6% in H1FY2022 compared to 47.6% in FY2021.
The bank has written back tax provisions of Rs 685.21 crore in H1FY2022 against
charge of Rs 543.51 crore in FY2021. The net profit has increased 191% to Rs 2270.84
crore in H1FY2022.
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Indian Bank: Results
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Particulars
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2109 (3)
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2009 (3)
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Var %
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2109 (6)
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2009 (6)
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Var %
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2103 (12)
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2003 (12)
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Var %$
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Interest Earned
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9474.51
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10057.38
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-6
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19098.10
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20177.33
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-5
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39105.79
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21404.97
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Interest Expended
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5391.02
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5913.34
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-9
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11020.45
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12159.00
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-9
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23439.84
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13798.55
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Net Interest Income
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4083.49
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4144.04
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-1
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8077.65
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8018.33
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1
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15665.95
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7606.42
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Other Income
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1965.91
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1558.53
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26
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3786.59
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2925.68
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29
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6079.25
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3312.46
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Net Total Income
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6049.40
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5702.57
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6
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11864.24
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10944.01
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8
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21745.20
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10918.88
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Operating Expenses
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2773.90
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2760.83
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0
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5172.89
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5208.53
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-1
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10349.55
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4420.84
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Operating Profits
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3275.50
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2941.74
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11
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6691.36
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5735.49
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17
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11395.65
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6498.04
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Provisions &
Contingencies
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2547.15
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2230.91
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14
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5105.73
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4410.42
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16
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8490.07
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5125.31
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Profit Before Tax
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728.35
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710.83
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2
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1585.63
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1325.07
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20
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2905.58
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1372.73
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Provisions for Tax
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-360.83
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298.55
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-221
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-685.21
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543.51
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-226
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-99.10
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619.37
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Net Profit
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1089.18
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412.28
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164
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2270.84
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781.56
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191
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3004.68
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753.36
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EPS*(Rs)
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35.0
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13.2
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36.5
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12.6
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24.1
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6.0
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* Annualized on current
equity of Rs 1245.44 crore. Face Value: Rs 10, Figures in Rs crore,
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LP : Loss to profit ;
PL : Profit to loss
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Source: Capitaline
Corporate Database
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