Indian Bank has reported 34% growth in net
profit at Rs 689.73 crore for the quarter ended December 2021. The bank has
posted 2% growth in net interest income (NII), while the core fee income of the
bank also improved 11% in Q3FY2022. The domestic Net Interest Margin (NIM) of
the bank eased to 3.03% in Q3FY2022 compared to 3.13% in the corresponding
quarter of previous year.
On business front, the bank as has posted 6% growth
in business with 3% rise in loan book. The asset quality of the bank has
improved in Q3FY2022. Bank has witnessed decline in the credit to deposit ratio
to 71.2% at end December 2021 from 74.8% at end December 2020. CASA ratio of
the bank has declined to 42.3% at end December 2021 from 41.6% at end December
2020.
Asset quality improves: The bank has improved asset quality in Q3FY2022.
GNPA% decreased from
9.56% in September 2021 to 9.13% in December 2021, decline of 43 bps on QoQ
basis.
NNPA% reduced from 3.26%
in September 2021 to 2.72% in December 2021, decline of 54 bps on QoQ basis.
PCR improved from
83.32% in September 2021 to 85.49% in December 2021.
The fresh slippages of loans stood at Rs 2805 crore
in Q3FY2022, while the recovery, upgradations and write-off together were
higher at Rs 3151 crore.
Capital Adequacy Ratio at 15.47%, increased by 141 bps
YoY. CET improved by 103 bps YoY from 10.35% to 11.38%. Tier I improved by 85
bps YoY from 11.18% to 12.03%.
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Asset Quality
Indicators: Indian Bank
|
|
|
Dec-21
|
Sep-21
|
Jun-21
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Mar-21
|
Dec-20
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Variation
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|
QoQ
|
YTD
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YoY
|
|
Gross NPA (Rs crore)
|
36539.57
|
36886.07
|
37759.18
|
38455.35
|
35237.24
|
-1
|
-5
|
4
|
|
Net NPA (Rs crore)
|
10154.90
|
11749.17
|
12652.87
|
12271.13
|
8537.48
|
-14
|
-17
|
19
|
|
% Gross NPA
|
9.13
|
9.56
|
9.69
|
9.85
|
9.04
|
-43
|
-72
|
9
|
|
% Net NPA
|
2.72
|
3.26
|
3.47
|
3.37
|
2.35
|
-54
|
-65
|
37
|
|
% Provision Coverage
Ratio
|
85.49
|
83.32
|
82.00
|
82.12
|
86.51
|
217
|
337
|
-102
|
|
% CRAR - Basel III
|
15.47
|
15.88
|
15.92
|
15.71
|
14.06
|
-41
|
-24
|
141
|
|
Tier I - Basel III %
|
11.38
|
11.68
|
12.22
|
11.93
|
10.35
|
-30
|
-55
|
103
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business
Highlights:
Business
growth eases: The business of the bank
has increased 6% YoY to Rs 963007 crore end December 2021, driven by 3% rise in
advances to Rs 400432 crore. Deposits rose 8% to Rs 562575 crore at end
December 2021.
CASA
deposits ratio improves:
The CASA deposits of the bank increased 10% YoY to Rs 234422 crore at end
December 2021. The CASA ratio rose to 42.3% at end December 2021 compared to 41.6%
at end December 2020.
Loan
growth eases: Advances growth was
driven by retail loans rising 13% YoY to Rs 75646 crore at end December 2021, while
credit to agriculture increased 14% to Rs 85257 crore and MSME 6% to Rs 72835 crore
at end December 2021. The corporate credit has declined 10% to Rs 151357 crore
end December 2021.
Investment
book of the bank rose 4% YoY
to Rs 184685 crore at end December 2021. The AFS book dipped 26% to Rs 45813 crore,
while HTM book rose 19% to Rs 138850 crore at end December 2021. The duration
of the overall investment portfolio stood at 2.61 years end December 2021
compared with 2.75 years at end December 2020.
Margins
ease on yoy basis: The bank has showed 49
bps YoY decline in cost of deposits to 3.85%, while yield on advances declined 36
bps YoY to 7.19% in Q3FY2022. NIM has declined 10 bps YoY to 3.03%.
Branch
expansion: The bank has network of
5754 branches and 4998 ATM`s end December 2021.
Book
value of the bank stood at Rs
299.2 per share at end December 2021, while the adjusted book value (net of
NNPA and 10% of restructured advances) was Rs 176.8 per share at end December
2021.
Quarterly Performance
NII
growth moderate: Bank has recorded 1%
decline in the interest earned at Rs 9925.70 crore, while interest expenses
declined 3% to Rs 5530.57 crore in Q3FY2022. NII improved 2% to Rs 4395.13 crore
in the quarter ended December 2021.
Healthy
growth in the core fee income: Bank has posted strong 11% growth in core fee income to Rs 665 crore,
while the recoveries and other income jumped 111% to Rs 278 crore. The treasury
income increased 59% to Rs 245 crore, leading to 36% rise in the overall
non-interest income to Rs 1556.10 crore in the quarter ended December 2021.
Stable
expenses ratio: The operating expenses
of the bank increased 2% to Rs 2663.27 crore, as other expenses moved up 5% to
Rs 1096 crore, while employee expenses were flat at Rs 1567.27 crore in
Q3FY2022. Cost to income ratio improved to 44.8% in Q3FY2022 compared with 47.9%
in Q3FY2021, helping the Operating Profit to increase 16% to Rs 3287.96 crore.
Provisions
and contingencies rises:
The bank has showed 21% increase in provisions to Rs 2493.05 crore.
Effective
tax rate declined to 13.2% in
Q3FY2022 from 34.5% in Q3FY2021. Net Profit rose by 34% YoY to Rs 689.73 crore
during quarter ended December 2021.
Financial Performance 9MFY2022:
Bank has posted 128% increase in net profit to Rs 2960.57 crore in
the nine months ended December 2021 (9MFY2022). The net interest income rose 1%
to Rs 12472.79 crore, while non-interest income moved up 31% to Rs 5342.69 crore,
pushing up net total income by 9% to Rs 17815.48 crore in 9MFY2022. The
operating expenses were flat at Rs 7836.16 crore, while provision and
contingencies galloped 17% to Rs 7598.78 crore. Profit before tax increased 13%
to Rs 2380.54 crore in 9MFY2022. The cost-to-income ratio improved to 44.0% in
9MFY2022 compared to 47.7% in 9MFY2021. An effective tax rate was negative at 24.4%
in 9MFY2022 compared to 38.6% in 9MFY2021. The net profit has increased 128% to
Rs 2960.57 crore in 9MFY2022.
|
Indian Bank: Results
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Particulars
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2112 (3)
|
2012 (3)
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Var %
|
2112 (9)
|
2012 (9)
|
Var %
|
2103 (12)$
|
2003 (12)
|
Var %
|
|
Interest Earned
|
9925.70
|
10024.53
|
-1
|
29023.81
|
30201.86
|
-4
|
39105.78
|
21404.97
|
|
|
Interest Expended
|
5530.57
|
5711.25
|
-3
|
16551.02
|
17870.25
|
-7
|
23439.84
|
13798.55
|
|
|
Net Interest Income
|
4395.13
|
4313.28
|
2
|
12472.79
|
12331.61
|
1
|
15665.94
|
7606.42
|
|
|
Other Income
|
1556.10
|
1143.33
|
36
|
5342.69
|
4069.01
|
31
|
5650.19
|
3312.46
|
|
|
Net Total Income
|
5951.23
|
5456.61
|
9
|
17815.48
|
16400.62
|
9
|
21316.13
|
10918.88
|
|
|
Operating Expenses
|
2663.27
|
2611.10
|
2
|
7836.16
|
7819.63
|
0
|
10349.55
|
4420.84
|
|
|
Operating Profits
|
3287.96
|
2845.51
|
16
|
9979.32
|
8580.99
|
16
|
10966.58
|
6498.04
|
|
|
Provisions &
Contingencies
|
2493.05
|
2060.87
|
21
|
7598.78
|
6471.29
|
17
|
8061.00
|
5125.31
|
|
|
Profit Before Tax
|
794.91
|
784.65
|
1
|
2380.54
|
2109.70
|
13
|
2905.58
|
1372.73
|
|
|
Provisions for Tax
|
105.18
|
270.36
|
-61
|
-580.03
|
813.87
|
-171
|
-99.10
|
619.37
|
|
|
Net Profit
|
689.73
|
514.30
|
34
|
2960.57
|
1295.83
|
128
|
3004.68
|
753.36
|
|
|
EPS*(Rs)
|
22.2
|
16.5
|
|
31.7
|
13.9
|
|
24.1
|
6.0
|
|
|
* Annualized on
current equity of Rs 1245.44 crore. Face Value: Rs 10, Figures in Rs crore,
$ figures relate to
merged entity and not compared with earlier periods.
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LP : Loss to profit ;
PL : Profit to loss
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Source: Capitaline
Corporate Database
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