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Indian Bank has reported 3% growth in net profit at Rs 1213.44
crore for the quarter ended June 2022 (Q1FY2023). The bank has posted healthy 14%
growth in net interest income (NII), while the core fee income of the bank also
improved 35% in Q1FY2023. The Net Interest Margin (NIM) of the bank improved to
3.10% in Q1FY2023 compared to 2.85% in the corresponding quarter of previous
year.
On business front, the bank as has posted 9% growth
in business with strong 9% surge in loan book. The asset quality of the bank
was stable in Q1FY2023. Bank has improved the credit to deposit ratio to 72.8% at
end June 2022 from 72.1% at end June 2021. However, the CASA ratio of the bank
has declined to 40.7% at end June 2022 from 40.9% at end June 2021.
Asset quality improves: The bank has improved asset quality in Q1FY2023.
The fresh slippages of loans stood at Rs 3089 crore
in Q1FY2023 compared with 3368 crore in previous quarter and Rs 4412 crore in
the corresponding quarter last year.
The recoveries of NPAs stood at Rs 929 crore,
upgradations at Rs 648 crore and the write-off of loans was at Rs 2152 crore in
Q1FY2023.
The standard restructured loan book of the bank
stood at Rs 16580 crore end June 2022.
Provision coverage ratio improved to 88.08% at
end June 2022 compared to 87.38% a quarter ago and 82.00% a year ago.
The capital adequacy ratio of the bank stood at 16.5%
with Tier I ratio at 13.2% at end June 2022.
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Asset Quality
Indicators: Indian Bank
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Jun-22
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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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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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34573.34
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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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-2
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-8
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Net NPA (Rs Crore)
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8470.72
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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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-4
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-33
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% Gross NPA
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8.13
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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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-34
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-156
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% Net NPA
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2.12
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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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-15
|
-135
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% PCR
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88.08
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87.38
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85.49
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83.32
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82.00
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70
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608
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% CRAR - Basel III
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16.51
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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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-2
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59
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% CRAR - Tier I -
Basel III
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13.17
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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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0
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95
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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 1009454 crore end June 2022, driven by 9% increase in advances to Rs 425203 crore.
Deposits rose 8% to Rs 584251 crore at end June 2022.
CASA deposits ratio eases: The CASA deposits of the bank moved up 8% YoY to
Rs 237967 crore at end June 2022. The CASA ratio eased to 40.7% at end June
2022 compared to 40.9% at end June 2021, while declined from 41.8% a quarter
ago.
Loan growth accelerates: Advances growth was driven by retail loans
rising 14% YoY to Rs 80667 crore at end June 2022, while credit to agriculture
increased 13% to Rs 90505 crore and and MSME 8% to Rs 73075 crore at end June
2022. The corporate credit has declined 2% to Rs 155113 crore end June 2022.
Investment
book of the bank rose 1% YoY
to Rs 184843 crore at end June 2022. The AFS book dipped 26% to Rs 52944 crore,
while HTM book rose 18% to Rs 131886 crore at end June 2022. The duration of
the overall investment portfolio stood at 1.91 years end June 2022 compared
with 1.8 years at end June 2021.
Margins improve: The bank has showed sharp 25 bps YoY decline in
cost of deposits to 3.83%, while yield on advances increased 10 bps YoY to 7.16%
in Q1FY2023. Thus, the NIM has improved 25 bps YoY to 3.10%.
Branch expansion: The bank has reduced 8 branches and 101 ATMs in
in Q1FY2023, taking overall tally to 5724 branches and 4824 ATM`s end June
2022.
Book value of the bank stood at Rs 310.8 per share at end June 2022, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 209.5
per share at end June 2022.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 6% increase in the interest
earned at Rs 10153.66 crore, while interest expenses declined 0% to Rs 5619.68 crore
in Q1FY2023. NII improved 14% to Rs 4533.98 crore in the quarter ended June
2022.
Healthy growth in the core fee income: Bank has posted strong 35% growth in core fee
income to Rs 627 crore, while the recoveries and other income jumped 19% to Rs 338
crore and forex income 133% to Rs 357 crore. However, the treasury segment recorded
loss of Rs 131 crore, causing 12% dip in the overall non-interest income to Rs 1604.63
crore in the quarter ended June 2022.
Stable expenses ratio: The operating expenses of the bank increased 7% to
Rs 2574.23 crore, as other expenses moved up 11% to Rs 1034.94 crore, while
employee expenses rose 5% to Rs 1539.29 crore in Q1FY2023. Cost to income ratio
was nearly stable at 41.9% in Q1FY2023 compared with 41.3% in Q1FY2022, helping
the Operating Profit to increase 4% to Rs 3564.38 crore.
Provisions and contingencies decline: The bank has showed 13% decline in provisions to
Rs 2218.93 crore. The loan loss provisions increased 15% to Rs 2002 crore,
while investment provisions jumped 444% to Rs 386 crore. However, the bank has written
back standard asset provision of Rs 204 crore and other provisions fell 8% to
Rs 35 crore.
Effective tax rate rebounded to 9.8% in Q1FY2023 from negative 37.8% in
Q1FY2022. Net Profit rose by 3% YoY to Rs 1213.44 crore during quarter ended
June 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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2206 (3)
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2106 (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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10153.66
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9623.59
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6
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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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5619.68
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5629.43
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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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4533.98
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3994.16
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14
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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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1604.63
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1820.68
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-12
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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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6138.61
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5814.84
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6
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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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2574.23
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2398.99
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7
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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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3564.38
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3415.85
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4
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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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2218.93
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2558.57
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-13
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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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1345.45
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857.28
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57
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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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132.01
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-324.38
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PL
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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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1213.44
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1181.66
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3
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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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39.0
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38.0
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31.7
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24.1
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Adj BV (Rs)
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209.5
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159.6
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193.1
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167.3
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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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