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Indian Bank has reported 102% growth in net profit at Rs 1395.76 crore
for the quarter ended December 2022 (Q3FY2023). The bank has posted healthy 25%
growth in net interest income (NII), while the core fee income of the bank also
improved 6% in Q3FY2023. The Net Interest Margin (NIM) of the bank improved to 3.74%
in Q3FY2023 compared to 3.03% in the corresponding quarter of previous year.
On business front, the bank as has posted 9% growth in
business with 13% surge in loan book. The asset quality of the bank has
improved substantially in Q3FY2023. Bank has sharply raised the credit to
deposit ratio to 75.6% at end December 2022 from 71.2% at end December 2021. However,
the CASA ratio of the bank has declined to 40.4% at end December 2022 from 41.7%
at end December 2021.
Asset quality improves: The
bank has substantially improved asset quality in Q3FY2023.
The fresh slippages of loans dipped Rs 1313 crore in
Q3FY2023 compared with 2460 crore in previous quarter and Rs 2805 crore in the
corresponding quarter last year.
The fresh
slippages from the corporate segment where Rs 25 crore, retail Rs 294 crore,
agriculture Rs 197 crore and MSME Rs 676 crore.
Segment
wise GNPA ratio for the retail segment was at 3.68%, agriculture 9.04%, MSME
13.51% and corporate and overseas at 3.67% end December 2022. Within retail
segment, the GNPA ratio for home loans stood at 2.74%, education loans 20.46%,
vehicle loans 4.89% etc.
The recoveries of NPAs stood at Rs 1339 crore, upgradations
at Rs 681 crore and the write-off of loans was at Rs 1768 crore in Q3FY2023.
The standard restructured loan book of the bank stood at Rs 15205
crore end December 2022.
SMA 1
loan book stood at Rs 1673 crore and SMA 2 loan book at Rs 1576 crore end
December 2022.
Segment
wise SMA 2 loan book for retail segment was Rs 68 crore, agriculture Rs 160
crore, MSME Rs 1125 crore and corporate Rs 223 crore end December 2022.
Provision coverage ratio improved to 93.59% at end December
2022 compared to 91.08% a quarter ago and 85.49% a year ago. The
provision coverage ratio excluding technical write offs has increased
substantially to Rs 85.52% end December 2022 from 80.68% end September 2022 and
72.21% end December 2021.
The capital adequacy ratio of the bank stood at 15.7% with
Tier I ratio at 12.6% at end December 2022.
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Asset Quality
Indicators: Indian Bank
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|
|
Dec-22
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Sep-22
|
Jun-22
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Mar-22
|
Dec-21
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Variation
|
|
QoQ
|
YTD
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YoY
|
|
Gross NPA (Rs Crore)
|
29483.91
|
31958.83
|
34573.34
|
35214.25
|
36539.57
|
-8
|
-16
|
-19
|
|
Net NPA (Rs Crore)
|
4270.48
|
6174.13
|
8470.72
|
8848.65
|
10154.90
|
-31
|
-52
|
-58
|
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% Gross NPA
|
6.53
|
7.30
|
8.13
|
8.47
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9.13
|
-77
|
-194
|
-260
|
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% Net NPA
|
1.00
|
1.50
|
2.12
|
2.27
|
2.72
|
-50
|
-127
|
-172
|
|
% PCR
|
93.59
|
91.08
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88.08
|
87.38
|
85.49
|
251
|
621
|
810
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% CRAR - Basel III
|
15.74
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16.15
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16.51
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16.53
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15.47
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-41
|
-79
|
27
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% CRAR - Tier I -
Basel III
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12.58
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12.89
|
13.17
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13.17
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12.03
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-31
|
-59
|
55
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth: The
business of the bank has increased 9% YoY to Rs 1048772 crore end December
2022, driven by 13% surge in advances to Rs 451658 crore. Deposits rose 6% to
Rs 597114 crore at end December 2022.
CASA deposits ratio declines: The CASA deposits of the bank rose 3% YoY to Rs 241213 crore
at end December 2022. The CASA ratio declined to 40.4% at end December 2022
compared to 41.7% at end December 2021, while eased from 40.9% a quarter ago.
Strong loan growth: Advances
growth was driven by retail loans rising 15% YoY to Rs 87219 crore at end
December 2022, while credit to agriculture increased 15% to Rs 98220 crore and MSME
6% to Rs 77372 crore at end December 2022. The corporate credit has moved up 7%
to Rs 161351 crore end December 2022. The overseas credit has jumped 79% to Rs 27496
crore end December 2022.
Investment book of the bank declined 1% YoY to Rs 182354 crore at end
December 2022. The AFS book dipped 7% to Rs 42431 crore, while HTM book rose 1%
to Rs 139575 crore at end December 2022. The duration of the overall investment
portfolio stood at 2.2 years end December 2022 compared with 2.61 years at end
December 2021.
Margins jump: The
bank has showed sharp 40 bps YoY increase in cost of deposits to 4.26%, while
yield on advances jumped 100 bps YoY to 8.19% in Q3FY2023. Thus, the NIM has
improved 71 bps YoY to 3.74%.
Branch expansion: The
bank has added 42 branches and 144 ATMs in Q3FY2023, taking overall tally to 5770
branches and 4969 ATM`s end December 2022.
Book value of
the bank stood at Rs 332.1 per share at end December 2022, while the adjusted
book value (net of NNPA and 25% of restructured advances) was Rs 267.3 per
share at end December 2022.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 19% increase in the interest earned at Rs 11834.23
crore, while interest expenses increased 15% to Rs 6335.04 crore in Q3FY2023. NII
improved 25% to Rs 5499.19 crore in the quarter ended December 2022.
Core fee income rises: Bank
has posted 6% growth in core fee income to Rs 704 crore, while the forex income
jumped 99% to Rs 294 crore. However, the recoveries and other income dipped 59%
to Rs 91 crore and treasury income declined 18% to Rs 201 crore. The overall
non-interest income rose 10% to Rs 1716.45 crore in the quarter ended December
2022.
Expenses ratio improves: The
operating expenses of the bank increased 18% to Rs 3154.22 crore, as other
expenses moved up 6% to Rs 1162.76 crore, while employee expenses increased 27%
to Rs 1991.46 crore in Q3FY2023. Cost to income ratio improved to 43.7% in
Q3FY2023 compared with 44.8% in Q3FY2022, helping the Operating Profit to
increase 24% to Rs 4061.42 crore.
Provisions and contingencies up: The bank has showed 1% growth in provisions to Rs 2515.73 crore.
The loan loss provisions declined 40% to Rs 1474 crore, while investment
provisions fell 69% to Rs 39 crore. On the other hand, standard asset
provisions rebounded to Rs 990 crore and other provisions to Rs 12 crore.
Effective tax rate declined to 9.7%
in Q3FY2023 from 13.2% in Q3FY2022. Net Profit jumped by 102% YoY to Rs 1395.76
crore during quarter ended December 2022.
Financial Performance 9MFY2023:
Bank has posted 30% increase in net profit to Rs 3834.42 crore
in the nine months ended December 2022 (9MFY2023). The net interest income
increased 18% to Rs 14717.14 crore, while non-interest income fell 4% to Rs 5149.19
crore. The net total income increased 12% to Rs 19866.33 crore in 9MFY2023. The
operating expenses increased 10% to Rs 8611.28 crore, while provision and
contingencies declined 11% to Rs 6793.21 crore, allowing profit before tax to
increase 87% to Rs 4461.84 crore in 9MFY2023. The cost-to-income ratio improved
to 43.3% in 9MFY2023 compared to 44.0% in 9MFY2022. An effective tax rate stood
at 14.1% in 9MFY2023. The net profit has increased 30% to Rs 3834.42 crore in
9MFY2023.
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Indian Bank: Results
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Particulars
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2212 (3)
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2112 (3)
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Var %
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2212 (9)
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2112 (9)
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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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11834.23
|
9925.70
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19
|
32697.79
|
29023.81
|
13
|
38856.22
|
39105.78
|
-1
|
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Interest Expended
|
6335.04
|
5530.57
|
15
|
17980.65
|
16551.02
|
9
|
22128.27
|
23439.84
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-6
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Net Interest Income
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5499.19
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4395.13
|
25
|
14717.14
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12472.79
|
18
|
16727.95
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15665.94
|
7
|
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Other Income
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1716.45
|
1556.10
|
10
|
5149.19
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5342.69
|
-4
|
6915.45
|
5650.19
|
22
|
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Net Total Income
|
7215.64
|
5951.23
|
21
|
19866.33
|
17815.48
|
12
|
23643.40
|
21316.13
|
11
|
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Operating Expenses
|
3154.22
|
2663.27
|
18
|
8611.28
|
7836.16
|
10
|
10926.50
|
10349.55
|
6
|
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Operating Profits
|
4061.42
|
3287.96
|
24
|
11255.05
|
9979.32
|
13
|
12716.90
|
10966.58
|
16
|
|
Provisions &
Contingencies
|
2515.73
|
2493.05
|
1
|
6793.21
|
7598.78
|
-11
|
9512.67
|
8061.00
|
18
|
|
Profit Before Tax
|
1545.69
|
794.91
|
94
|
4461.84
|
2380.54
|
87
|
3204.23
|
2905.58
|
10
|
|
Provision for tax
|
149.93
|
105.18
|
43
|
627.42
|
-580.03
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LP
|
-740.59
|
-99.10
|
647
|
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PAT
|
1395.76
|
689.73
|
102
|
3834.42
|
2960.57
|
30
|
3944.82
|
3004.68
|
31
|
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EPS*(Rs)
|
44.8
|
22.2
|
|
41.1
|
31.7
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|
31.7
|
24.1
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Adj BV (Rs)
|
267.3
|
176.8
|
|
267.3
|
176.8
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|
193.1
|
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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Source: Capitaline Corporate
Database
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