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Indian Bank has reported 42% decline in net
profit at Rs 984.25 crore for the quarter ended March 2022, mainly on account
of lower tax write-back in Q4FY2022 over Q4FY2021. The bank has posted healthy 28%
growth in net interest income (NII), while the core fee income of the bank also
improved 23% in Q4FY2022. The domestic Net Interest Margin (NIM) of the bank
improved to 2.87% in Q4FY2022 compared to 2.34% in the corresponding quarter of
previous year.
On business front, the bank as has posted 9% growth
in business with strong 6% surge in loan book. The asset quality of the bank has
improved despite higher slippages of loans in Q4FY2022. Bank has witnessed
decline in the credit to deposit ratio to 70.0% at end March 2022 from 72.5% at
end March 2021. The CASA ratio of the bank has eased to 42.4% at end March 2022
from 43.0% at end March 2021.
Asset
quality improves: The bank has improved asset
quality in Q4FY2022 with higher recoveries, upgradations and write-off of NPAs.
The fresh slippages of loans stood at Rs 3368 crore
in Q4FY2022 compared with Rs 2805 crore in the previous quarter, while
slippages declined from 8313 crore in the corresponding quarter last year.
The bank has improved recoveries, upgradations
and write-off of loans to Rs 4694 crore in Q4FY2022 from Rs 3151 crore in
previous quarter, while it were steady from Rs 5095 crore in Q4FY2021.
The restructured loan book
The bank has improved provision coverage ratio
to 87.38% end March 2022 from 82.12% end December 2021.
The capital adequacy ratio of the bank stood at 16.5%
with Tier I ratio at 13.2% at end March 2022.
The Risk Weighted Asset increased 4% to Rs
308938 crore end March 2022.
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Asset Quality
Indicators: Indian Bank
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Mar-22
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Dec-21
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Sep-21
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Jun-21
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Mar-21
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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35214.25
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36539.57
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36886.07
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37759.18
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38455.35
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-4
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-8
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Net NPA (Rs Crore)
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8848.65
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10154.90
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11749.17
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12652.87
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12271.13
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-13
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-28
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% Gross NPA
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8.47
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9.13
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9.56
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9.69
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9.85
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-66
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-138
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% Net NPA
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2.27
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2.72
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3.26
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3.47
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3.37
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-45
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-110
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% Provision Coverage
Ratio
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87.39
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85.49
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83.32
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82.00
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82.12
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190
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527
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% CRAR - Basel III
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16.53
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15.47
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15.88
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15.92
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15.71
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106
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82
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Tier I - Basel III %
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13.17
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12.03
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12.34
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12.22
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11.93
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114
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124
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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
Highlights:
Business
growth improves: The business of the
bank has increased 9% YoY to Rs 1009243 crore end March 2022, driven by 6% surge
in advances to Rs 415625 crore. Deposits moved up 10% to Rs 593618 crore at end
March 2022.
CASA
deposits ratio declines:
The CASA deposits of the bank increased 9% YoY to Rs 247926 crore at end March
2022. The CASA ratio declined to 42.4% at end March 2022 compared to 43.0% at
end March 2021.
Loan
growth improves: Advances growth was
driven by retail loans rising 15% YoY to Rs 80433 crore at end March 2022, while
credit to agriculture increased 12% to Rs 88100 crore and MSME 6% to Rs 74167 crore
at end March 2022. The corporate credit has declined 5% to Rs 152998 crore end
March 2022.
Investment book of the bank declined 1% YoY to
Rs 178435 crore at end March 2022. The AFS book dipped 19% to Rs 41931 crore, while
HTM book rose 7% to Rs 136463 crore at end March 2022. The duration of the
overall investment portfolio stood at 2.57 years end March 2022 compared with 2.26
years at end March 2021.
Margins
improve: The bank has showed sharp
17 bps YoY decline in cost of deposits to 3.88%, while yield on advances increased
73 bps YoY to 7.00% in Q4FY2022. Thus, the NIM has improved 53 bps YoY to 2.87%.
Branch
expansion: The bank has reduced 25
branches and 73 ATMs in Q4FY2022, taking overall tally to 5732 branches and 4925
ATM`s end March 2022.
Book
value of the bank stood at Rs
301.1 per share at end March 2022, while the adjusted book value (net of NNPA
and 10% of restructured advances) was Rs 193.1 per share at end March 2022.
Quarterly Performance
NII
rises as NIM improves:
Bank has recorded 10% increase in the interest earned at Rs 9832.41 crore, while
interest expenses were flat at Rs 5577.25 crore in Q4FY2022. NII improved 28% to
Rs 4255.16 crore in the quarter ended March 2022.
Healthy
growth in the core fee income: Bank has posted strong 23% growth in core fee income to Rs 813 crore,
while the recoveries and other income declined 38% to Rs 197 crore. The
treasury income also declined 71% to Rs 84 crore, causing 1% dip in the overall
non-interest income to Rs 1572.76 crore in the quarter ended March 2022.
Stable
expenses ratio: The operating expenses
of the bank increased 22% to Rs 3090.34 crore, as other expenses moved up 1% to
Rs 1140.91 crore, while employee expenses moved up 39% to Rs 1949.43 crore in
Q4FY2022. Cost to income ratio rose to 53.0% in Q4FY2022 compared with 51.5% in
Q4FY2021, helping the Operating Profit to increase 15% to Rs 2737.58 crore.
Provisions
and contingencies jumps: The
bank has showed 20% increase in provisions to Rs 1913.89 crore. The NPA
provisions declined 29% to Rs 2046 crore, while the write back of standard
asset provision dipped to Rs 95 crore in Q4FY2022 from Rs 1333 crore in
Q4FY2021. The bank has written back other provisions of Rs 36 crore in
Q4FY2022.
The write back of tax provisions dipped to Rs
160.56 crore in Q4FY2022 from Rs 912.97 crore in Q4FY2021. Net Profit declined 42%
YoY to Rs 984.25 crore during quarter ended March 2022.
Financial Performance FY2022:
Bank has posted 31% increase in net profit to Rs
3944.82 crore in the year ended March 2022 (FY2022). The net interest income
increased 7% to Rs 16727.95 crore, while non-interest income moved up 22% to Rs
6915.45 crore, pushing up net total income by 11% to Rs 23643.40 crore in
FY2022. The operating expenses increased 6% to Rs 10926.50 crore, while
provision and contingencies galloped 18% to Rs 9512.67 crore, allowing profit
before tax to increase 10% to Rs 3204.23 crore in FY2022. The cost-to-income
ratio improved to 46.2% in FY2022 compared to 48.6% in FY2021. The write back
of tax provision increased Rs 740.59 crore in FY2022 from Rs 99.10 crore in FY2021.
The net profit has increased 31% to Rs 3944.82 crore in FY2022.
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Indian Bank: Results
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Particulars
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2203 (3)
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2103 (3)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Interest Earned
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9832.41
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8903.92
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10
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38856.22
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39105.78
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-1
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Interest Expended
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5577.25
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5569.59
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0
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22128.27
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23439.84
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-6
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Net Interest Income
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4255.16
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3334.33
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28
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16727.95
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15665.94
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7
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Other Income
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1572.76
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1581.18
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-1
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6915.45
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5650.19
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22
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Net Total Income
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5827.92
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4915.51
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19
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23643.40
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21316.13
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11
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Operating Expenses
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3090.34
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2529.92
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22
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10926.50
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10349.55
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6
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Operating Profits
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2737.58
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2385.59
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15
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12716.90
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10966.58
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16
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Provisions &
Contingencies
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1913.89
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1589.71
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20
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9512.67
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8061.00
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18
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Profit Before Tax
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823.69
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795.88
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3
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3204.23
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2905.58
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10
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Provisions for Tax
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-160.56
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-912.97
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-82
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-740.59
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-99.10
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647
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Net Profit
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984.25
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1708.85
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-42
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3944.82
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3004.68
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31
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EPS*(Rs)
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31.61
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54.88
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31.67
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24.13
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Adj BV (Rs)
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193.05
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167.31
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193.05
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167.31
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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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