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Indian Bank has reported 12% growth in net profit at Rs 1225.22
crore for the quarter ended September 2022 (Q2FY2023). The bank has posted
healthy 15% growth in net interest income (NII), while the core fee income of
the bank also improved 19% in Q2FY2023. The Net Interest Margin (NIM) of the
bank improved to 3.20% in Q2FY2023 compared to 2.89% in the corresponding quarter
of previous year.
On business front, the bank as has posted 10% growth
in business with 14% surge in loan book. The asset quality of the bank has
improved in Q2FY2023. Bank has substantially improved the credit to deposit
ratio to 74.4% at end September 2022 from 69.9% at end September 2021.T the
CASA ratio of the bank was steady at 40.9% at end September 2022 from 40.9% at
end September 2021.
Asset quality improves: The bank has improved asset quality with lower fresh slippages of loans higher NPA reductions in
Q2FY2023.
The fresh slippages of loans stood at Rs 2460 crore
in Q2FY2023 compared with 3089 crore in previous quarter and Rs 3952 crore in
the corresponding quarter last year.
The recoveries of NPAs stood at Rs 1583 crore,
upgradations at Rs 988 crore and the write-off of loans was at Rs 2504 crore in
Q2FY2023.
The standard restructured loan book of the bank
stood at Rs 16060 crore end September 2022.
Provision coverage ratio improved to 91.08% at
end September 2022 compared to 88.08% a quarter ago and 83.32% a year ago.
The capital adequacy ratio of the bank stood at 16.2%
with Tier I ratio at 12.9% at end September 2022.
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Asset Quality
Indicators: Indian Bank
|
|
|
Sep-22
|
Jun-22
|
Mar-22
|
Dec-21
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Sep-21
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Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
31958.83
|
34573.34
|
35214.25
|
36539.57
|
36886.07
|
-8
|
-9
|
-13
|
|
Net NPA (Rs Crore)
|
6174.13
|
8470.72
|
8848.65
|
10154.90
|
11749.17
|
-27
|
-30
|
-47
|
|
% Gross NPA
|
7.30
|
8.13
|
8.47
|
9.13
|
9.56
|
-83
|
-117
|
-226
|
|
% Net NPA
|
1.50
|
2.12
|
2.27
|
2.72
|
3.26
|
-62
|
-77
|
-176
|
|
% PCR
|
91.08
|
88.08
|
87.38
|
85.49
|
83.32
|
300
|
370
|
776
|
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% CRAR - Basel III
|
16.15
|
16.51
|
16.53
|
15.47
|
15.88
|
-36
|
-38
|
27
|
|
% CRAR - Tier I -
Basel III
|
12.89
|
13.17
|
13.17
|
12.03
|
12.34
|
-28
|
-28
|
55
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Healthy business growth: The business of the bank has increased 10% YoY
to Rs 1026801 crore end September 2022, driven by 14% surge in advances to Rs 437941
crore. Deposits rose 7% to Rs 588860 crore at end September 2022.
Stable CASA deposits ratio: The CASA deposits of the bank rose 7% YoY to Rs 241078
crore at end September 2022. The CASA ratio was steady at 40.9% at end
September 2022 compared to 40.9% at end September 2021, while rose from 40.7% a
quarter ago.
Strong loan growth: Advances growth was driven by retail loans
rising 14% YoY to Rs 83655 crore at end September 2022, while credit to
agriculture increased 15% to Rs 95214 crore and MSME 9% to Rs 76387 crore at
end September 2022. The corporate credit also rose 6% to Rs 156242 crore end
September 2022. The overseas credit has jumped 136% to Rs 26443 crore end
September 2022.
Investment
book of the bank was flat YoY
at Rs 184311 crore at end September 2022. The AFS book dipped 20% to Rs 44986 crore,
while HTM book rose 9% to Rs 138929 crore at end September 2022. The duration of
the overall investment portfolio stood at 2.02 years end September 2022
compared with 1.51 years at end September 2021.
Margins improve: The bank has showed 16 bps YoY rise in cost of
deposits to 4.05%, while yield on advances jumped 50 bps YoY to 7.48% in
Q2FY2023. Thus, the NIM has improved 31 bps YoY to 3.20%.
Branch expansion: The bank has added 4 branches and 1 ATMs in in
Q2FY2023, taking overall tally to 5728 branches and 4825 ATM`s end September
2022.
Book value of the bank stood at Rs 320.9 per share at end September 2022,
while the adjusted book value (net of NNPA and 25% of restructured advances)
was Rs 239.0 per share at end September 2022.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 13% increase in the interest
earned at Rs 10709.90 crore, while interest expenses increased 12% to Rs 6025.93
crore in Q2FY2023. NII improved 15% to Rs 4683.97 crore in the quarter ended
September 2022.
Healthy growth in the core fee income: Bank has posted strong 19% growth in core fee
income to Rs 723 crore, while the recoveries and other income jumped 154% to Rs
173 crore and forex income 171% to Rs 312 crore. However, the treasury income
declined 64% to Rs 142 crore, causing 7% dip in the overall non-interest income
to Rs 1828.11 crore in the quarter ended September 2022.
Expenses ratio improves: The operating expenses of the bank increased 4% to
Rs 2882.83 crore, as other expenses moved up 4% to Rs 1106.24 crore, while
employee expenses rose 4% to Rs 1776.59 crore in Q2FY2023. Cost to income ratio
improved to 44.3% in Q2FY2023 compared with 45.9% in Q2FY2022, helping the
Operating Profit to increase 11% to Rs 3629.25 crore.
Provisions and contingencies decline: The bank has showed 19% decline in provisions to
Rs 2058.55 crore. The loan loss provisions declined 10% to Rs 2000 crore, while
standard asset provisions fell 84% to Rs 65 crore and bank has reversed investment
provisions of Rs 20 crore. The other provisions increased 27% to Rs 14.00 crore.
Effective tax rate jumped to 22.0% in Q2FY2023 from negative 49.5% in
Q2FY2022. Net Profit rose by 12% YoY to Rs 1225.22 crore during quarter ended
September 2022.
Financial Performance H1FY2023
Bank has posted 7% increase in net profit to Rs 2438.66
crore in the year half year ended September 2022 (H1FY2023). The net interest
income increased 14% to Rs 9217.95 crore, while non-interest income declined 9%
to Rs 3432.74 crore, pushing up net total income by 7% to Rs 12650.69 crore in
H1FY2023. The operating expenses increased 5% to Rs 5457.06 crore, while
provision and contingencies declined 16% to Rs 4277.48 crore, allowing profit
before tax to increase 84% to Rs 2916.15 crore in H1FY2023. The cost-to-income
ratio improved to 43.1% in H1FY2023 compared to 43.6% in H1FY2022. An effective
tax rate jumped to 16.4% in H1FY2023 compared to negative 43.2% in H1FY2022. The
net profit has increased 7% to Rs 2438.66 crore in H1FY2023.
| Indian Bank: Results |
| Particulars |
2209 (3) |
2109 (3) |
Var % |
2209 (6) |
2109 (6) |
Var % |
2203 (12) |
2103 (12) |
Var % |
| Interest
Earned |
10709.90 |
9474.51 |
13 |
20863.56 |
19098.10 |
9 |
38856.22 |
39105.78 |
-1 |
| Interest
Expended |
6025.93 |
5391.02 |
12 |
11645.61 |
11020.45 |
6 |
22128.27 |
23439.84 |
-6 |
| Net Interest
Income |
4683.97 |
4083.49 |
15 |
9217.95 |
8077.65 |
14 |
16727.95 |
15665.94 |
7 |
| Other Income |
1828.11 |
1965.91 |
-7 |
3432.74 |
3786.59 |
-9 |
6915.45 |
5650.19 |
22 |
| Net Total
Income |
6512.08 |
6049.40 |
8 |
12650.69 |
11864.24 |
7 |
23643.40 |
21316.13 |
11 |
| Operating
Expenses |
2882.83 |
2773.90 |
4 |
5457.06 |
5172.89 |
5 |
10926.50 |
10349.55 |
6 |
| Operating
Profits |
3629.25 |
3275.50 |
11 |
7193.63 |
6691.35 |
8 |
12716.90 |
10966.58 |
16 |
| Provisions
& Contingencies |
2058.55 |
2547.16 |
-19 |
4277.48 |
5105.73 |
-16 |
9512.67 |
8061.00 |
18 |
| Profit Before
Tax |
1570.70 |
728.34 |
116 |
2916.15 |
1585.62 |
84 |
3204.23 |
2905.58 |
10 |
| Provision for
tax |
345.48 |
-360.83 |
PL |
477.49 |
-685.21 |
PL |
-740.59 |
-99.10 |
647 |
| PAT |
1225.22 |
1089.17 |
12 |
2438.66 |
2270.83 |
7 |
3944.82 |
3004.68 |
31 |
| EPS*(Rs) |
39.4 |
35.0 |
|
39.2 |
36.5 |
|
31.7 |
24.1 |
|
| Adj BV (Rs) |
239.0 |
160.8 |
|
239.0 |
160.8 |
|
193.1 |
167.3 |
|
| * Annualized on
current equity of Rs 1245.44 crore. Face Value: Rs 10, PL: Profit to Loss, Figures in Rs crore |
| Source: Capitaline
Corporate Database |
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