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Indian Bank has reported 47% growth
in net profit at Rs 1447.28 crore for the quarter ended March 2023 (Q4FY2023). The
bank has posted healthy 29% growth in net interest income (NII), while the core
fee income of the bank also improved 12% in Q4FY2023. The Net Interest Margin
(NIM) of the bank improved to 3.59% in Q4FY2023 compared to 2.87% in the
corresponding quarter of previous year, while eased on sequential basis from
3.74% in Q3FY2023.
On business front, the bank has posted 8% growth
in business with strong 14% surge in loan book. The asset quality of the bank has
improved in Q4FY2023. Bank has substantially improved the credit to deposit
ratio to 76.2% at end March 2023 from 70.0% at end March 2022. The CASA ratio
of the bank has improved to 42.0% at end March 2023 from 41.8% at end March
2022.
Asset quality improves: The bank has maintained stable asset quality in
Q4FY2023.
The fresh slippages of loans stood at Rs 2566 crore
in Q4FY2023 compared with 1313 crore in previous quarter and Rs 3368 crore in
the corresponding quarter last year.
Segment
wise, the retail segment contributed fresh slippages of Rs 501 crore,
agriculture Rs 708 crore, MSME Rs 1343 crore and slippages in the corporate
segment were negligible at Rs 14 crore.
The recoveries of NPAs stood at Rs 1371 crore,
upgradations at Rs 530 crore and the write-off of loans was at Rs 1969 crore in
Q4FY2023.
The standard restructured loan book of the bank declined
to Rs 11278 crore end March 2023 from Rs 15205 crore end December 2023.
The
slippages in the restructured loan book were Rs 699 crore, while the bank has
upgraded Rs 2862 crore and recovered Rs 367 crore of restructured loans.
SMA
1& 2 category loan book of the bank has declined to Rs 2417 crore (0.54% of
loan book) end March 2023 from Rs 3249 crore (0.77%) end December 2022.
Provision coverage ratio was steady at 93.82% at
end March 2023 compared to 93.59% a quarter ago and 87.38% a year ago.
The capital adequacy ratio of the bank stood at 16.5%
with Tier I ratio at 13.5% at end March 2023.
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Asset Quality
Indicators: Indian Bank
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Mar-23
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Dec-22
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Sep-22
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Jun-22
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Mar-22
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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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28179.53
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29483.91
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31958.83
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34573.34
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35214.25
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-4
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-20
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Net NPA (Rs Crore)
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4043.07
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4270.48
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6174.13
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8470.72
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8848.65
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-5
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-54
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% Gross NPA
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5.95
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6.53
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7.30
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8.13
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8.47
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-58
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-252
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% Net NPA
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0.90
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1.00
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1.50
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2.12
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2.27
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-10
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-137
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% PCR
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93.82
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93.59
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91.08
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88.08
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87.38
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23
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644
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% CRAR - Basel III
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16.49
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15.74
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16.15
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16.51
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16.53
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75
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-4
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% CRAR - Tier I -
Basel III
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13.48
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12.58
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12.89
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13.17
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13.17
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90
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31
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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 driven by double digit loan
growth: The business of the bank
has increased 8% YoY to Rs 1094752 crore end March 2023, driven by 14% surge in
advances to Rs 473586 crore. Deposits rose 5% to Rs 621166 crore at end March
2023.
CASA deposits ratio improves: The CASA deposits of the bank rose 5% YoY to Rs 260809
crore at end March 2023. The current account deposits declined 2% to Rs 35857 crore,
while saving account deposits increased 7% to Rs 224952 crore end March 2023. The
CASA ratio rose to 42.0% at end March 2023 compared to 41.8% at end March 2022,
while declined from 40.4% a quarter ago.
Strong loan growth: Advances growth was driven by retail loans
rising 13% YoY to Rs 91086 crore at end March 2023, while credit to agriculture
increased 16% to Rs 101937 crore and MSME 7% to Rs 79656 crore at end March
2023. The corporate credit has also increased 12% to Rs 171242 crore end March
2023. The overseas credit has jumped 49% to Rs 29665 crore end March 2023.
Investment
book of the bank rose 5% YoY
to Rs 187882 crore at end March 2023. The AFS book increased 8% to Rs 45457 crore,
while HTM book rose 4% to Rs 142333 crore at end March 2023.
Margins improve yoy: The bank has showed 64 bps YoY increase in cost
of deposits to 4.44%, while yield on advances jumped 117 bps YoY to 8.17% in
Q4FY2023. Thus, the NIM has improved 72 bps YoY to 3.59%.
Branch expansion: The bank has added 21 branches and reduced 40 ATMs
in Q4FY2023, taking overall tally to 5791 branches and 4929 ATM`s end March
2023.
Book value of the bank stood at Rs 336.2 per share at end March 2023, while
the adjusted book value (net of NNPA and 25% of restructured advances) was Rs
281.1 per share at end March 2023.
Quarterly Performance
NII rises on better margins and strong loan
growth: Bank has recorded 25% increase
in the interest earned at Rs 12244.42 crore, while interest expenses increased 21%
to Rs 6736.10 crore in Q4FY2023. NII improved 29% to Rs 5508.32 crore in the
quarter ended March 2023.
Healthy growth in the core fee income: Bank has posted strong 12% growth in core fee
income to Rs 914 crore, while the recoveries and other income jumped 137% to Rs
952 crore supporting 27% increase in the overall non-interest income to Rs 1993.87
crore in the quarter ended March 2023. However, the forex income declined 83% to
Rs 46 crore and the treasury income fell 2% to Rs 82 crore.
Expenses ratio improves: The operating expenses of the bank increased 13%
to Rs 3486.62 crore, as other expenses moved up 11% to Rs 1266.73 crore, while
employee expenses increased 14% to Rs 2219.89 crore in Q4FY2023. Cost to income
ratio improved to 46.5% in Q4FY2023 compared with 53.0% in Q4FY2022, helping
the Operating Profit to increase 47% to Rs 4015.57 crore.
Provisions and contingencies rises: The bank has showed 34% jump in provisions to Rs
2563 crore. The loan loss provisions declined 49% to Rs 1040 crore, but standard asset provisions rebounded
to Rs 1444 crore and other provisions to
Rs 80 crore.
Tax provisions were at Rs 5.29 crore
in Q4FY2023 against the
write back of tax provisions of Rs 160.56 crore in Q4FY2022. Net Profit jumped by
47% YoY to Rs 1447.28 crore during quarter ended March 2023.
Financial Performance FY2023:
Bank has posted 34% increase in net profit to Rs 5281.70 crore in
the year ended March 2023 (FY2023). The net interest income increased 21% to Rs
20225.46 crore, while non-interest income moved up 3% to Rs 7143.06 crore, pushing
up net total income by 16% to Rs 27368.52 crore in FY2023. The operating
expenses increased 11% to Rs 12097.90 crore, while provision and contingencies fell
2% to Rs 9356.21 crore, allowing profit before tax to increase 85% to Rs 5914.41
crore in FY2023. The cost-to-income ratio improved to 44.2% in FY2023 compared
to 46.2% in FY2022. An effective tax rate increased to 10.7% in FY2023 compared
to negative 23.1% in FY2022. The net profit has increased 34% to Rs 5281.70 crore
in FY2023.
The bank has declared dividend of Rs 8.6 per share for FY2023.
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Indian Bank: Results
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Particulars
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2303 (3)
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2203 (3)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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12244.42
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9832.41
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25
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44942.21
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38856.22
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16
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Interest Expended
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6736.10
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5577.25
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21
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24716.75
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22128.27
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12
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Net Interest Income
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5508.32
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4255.16
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29
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20225.46
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16727.95
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21
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Other Income
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1993.87
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1572.76
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27
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7143.06
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6915.45
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3
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Net Total Income
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7502.19
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5827.92
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29
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27368.52
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23643.40
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16
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Operating Expenses
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3486.62
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3090.34
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13
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12097.90
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10926.50
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11
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Operating Profits
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4015.57
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2737.58
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47
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15270.62
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12716.90
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20
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Provisions &
Contingencies
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2563.00
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1913.89
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34
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9356.21
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9512.67
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-2
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Profit Before Tax
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1452.57
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823.69
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76
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5914.41
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3204.23
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85
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Provision for tax
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5.29
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-160.56
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PL
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632.71
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-740.59
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PL
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PAT
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1447.28
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984.25
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47
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5281.70
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3944.82
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34
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EPS*(Rs)
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46.5
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31.6
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42.4
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31.7
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Adj BV (Rs)
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281.1
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193.1
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281.1
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193.1
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* Annualized on current equity of
Rs 1245.44 crore. Face Value: Rs 10, Figures in Rs crore, PL: Profit to loss,
LP: Loss to Profit
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Source: Capitaline Corporate
Database
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