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Indian Bank has reported 62%
growth in net profit at Rs 1987.76 crore for the quarter ended September 2023
(Q2FY2024). The bank has posted healthy 23% growth in net interest income
(NII), while the core fee income of the bank also improved 11% in Q2FY2024. The
Net Interest Margin (NIM) of the bank improved to 3.46% in Q2FY2024 compared to
3.20% in the corresponding quarter of previous year.
On business front, the bank as has posted 10%
growth in business with 12% surge in loan book. The asset quality of the bank has
continued to improve in Q2FY2024. Bank has substantially improved the credit to
deposit ratio to 76.8% at end September 2023 from 74.4% at end September 2022. The
CASA ratio of the bank was stable at 40.1% at end September 2023 from 40.9% at
end September 2022.
Asset quality improves: The bank has exhibited healthy improvement in
the asset quality in Q2FY2024.
The fresh slippages of loans stood at Rs 1982
crore in Q2FY2024 compared with 1852 crore in previous quarter and Rs 2460
crore in the corresponding quarter last year.
The recoveries of NPAs stood at Rs 1093 crore,
upgradations at Rs 322 crore and the write-off of loans was at Rs 2306 crore in
Q2FY2024.
The standard restructured loan book of the bank
stood at Rs 7306 crore end September 2023.
Provision coverage ratio was steady at 95.64% at
end September 2023 compared to 95.10% a quarter ago and 91.08% a year ago.
The capital adequacy ratio of the bank stood at
15.5% with Tier I ratio at 12.6% at end September 2023.
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Asset Quality
Indicators: Indian Bank
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Sep-23
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Jun-23
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Mar-23
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Dec-22
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Sep-22
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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24487.53
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26226.92
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28179.53
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29483.91
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31958.83
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-7
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-13
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-23
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Net NPA (Rs Crore)
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2825.85
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3197.55
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4043.07
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4270.48
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6174.13
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-12
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-30
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-54
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% Gross NPA
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4.97
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5.47
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5.95
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6.53
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7.30
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-50
|
-98
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-233
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% Net NPA
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0.60
|
0.70
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0.90
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1.00
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1.50
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-10
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-30
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-90
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% PCR
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95.64
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95.10
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93.82
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93.59
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91.08
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54
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182
|
456
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% CRAR - Basel III
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15.53
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15.78
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16.49
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15.74
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16.15
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-25
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-96
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-62
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% CRAR - Tier I -
Basel III
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12.63
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12.88
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13.48
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12.58
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12.89
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-25
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-85
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-26
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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:
Healthy business growth: The business of the bank has increased 10% YoY
to Rs 1133091 crore end September 2023, driven by 12% surge in advances to Rs
492288 crore. Deposits rose 9% to Rs 640803 crore at end September 2023.
CASA deposits ratio steady: The CASA deposits of the bank rose 7% YoY to Rs
257027 crore at end September 2023. The current account deposits were flat at Rs
33447 crore, while saving account deposits increased 8% to Rs 223580 crore end
September 2023. The CASA ratio was nearly steady at 40.1% at end September 2023
compared to 40.9% at end September 2022 and 40.3% a quarter ago. The term
deposits have increased 10% to Rs 383776 crore end September 2023.
Healthy loan growth: Advances growth was driven by retail loans
rising 14% YoY to Rs 95371 crore at end September 2023, while credit to
agriculture increased 16% to Rs 110404 crore and MSME 5% to Rs 80116 crore at
end September 2023. The corporate credit has also moved up 11% to Rs 172790
crore end September 2023. The overseas credit has jumped 27% to Rs 33607 crore
end September 2023.
Investment
book of the bank increased 10%
YoY to Rs 203560 crore at end September 2023. The AFS book jumped 25% to Rs
56279 crore, while HTM book rose 6% to Rs 146738 crore at end September 2023.
The duration of the overall investment portfolio stood at 2.84 years end
September 2023 compared with 2.02 years at end September 2022.
Margins improve: The bank has showed 92 bps YoY jump in cost of
deposits to 4.97%, while yield on advances increased 127 bps YoY to 8.75% in
Q2FY2024. Thus, the NIM has improved 26 bps YoY to 3.46%.
Branch expansion: The bank has added 21 branches and 62 ATMs in
Q2FY2024, taking overall tally to 5819 branches and 4866 ATM`s end September
2023.
Book value of the bank stood at Rs 365.8 per share at end September 2023,
while the adjusted book value (net of NNPA and 25% of restructured advances)
was Rs 328.4 per share at end September 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 28% increase in the interest
earned at Rs 13743.26 crore, while interest expenses increased 33% to Rs
8003.07 crore in Q2FY2024. NII improved 23% to Rs 5740.19 crore in the quarter
ended September 2023.
Healthy growth in the core fee income: Bank has posted 11% growth in core fee income to
Rs 805 crore, while the recoveries income rose 6% to Rs 508 crore and the
treasury income jumped 127% to Rs 323 crore. The other income jumped 14600% to
Rs 268 crore, leading to 9% growth in the overall non-interest income to Rs
1992.97 crore in the quarter ended September 2023. However, the forex income declined
72% to Rs 88 crore.
Stable expenses ratio: The operating expenses of the bank increased 19%
to Rs 3430.43 crore, as other expenses moved up 13% to Rs 1253.53 crore, while
employee expenses increased 23% to Rs 2176.9 crore in Q2FY2024. Cost to income
ratio was nearly stable at 44.4% in Q2FY2024 compared with 44.3% in Q2FY2023,
helping the Operating Profit to increase 19% to Rs 4302.73 crore.
Provisions and contingencies decline: The bank has showed -25% decline in provisions
to Rs 1550.65 crore. The loan loss provisions declined -54% to Rs 9180 crore,
while other provisions fell -31% to Rs 9 crore. The investment provisions increased
to Rs 50 crore and standard asset provisions jumped 783% to Rs 574 crore.
Effective tax rate rose to 27.8% in Q2FY2024 from 22.0% in Q2FY2023. Net
Profit rose by 62% YoY to Rs 1987.76 crore during quarter ended September 2023.
Financial Performance H1FY2024:
Bank has posted 52% increase in net profit to Rs
3696.59 crore in the half year ended September 2023 (H1FY2024). The net
interest income increased 24% to Rs 11443.70 crore, while non-interest income
moved up 8% to Rs 3702.55 crore, pushing up net total income by 20% to Rs
15146.25 crore in H1FY2024. The operating expenses increased 23% to Rs 6708.87
crore, while provision and contingencies dipped -23% to Rs 3291.29 crore,
allowing profit before tax to increase 76% to Rs 5146.09 crore in H1FY2024. The
cost-to-income ratio rose to 44.3% in H1FY2024 compared to 43.1% in H1FY2023.
An effective tax rate jumped to 28.2% in H1FY2024 compared to 16.4% in
H1FY2023. The net profit has increased 52% to Rs 3696.59 crore in H1FY2024.
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Indian Bank: Results
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Particulars
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2309 (3)
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2209 (3)
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Var %
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2309 (6)
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2209 (6)
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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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13743.26
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10709.90
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28
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26792.67
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20863.56
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28
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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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8003.07
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6025.93
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33
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15348.97
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11645.61
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32
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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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5740.19
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4683.97
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23
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11443.70
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9217.95
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24
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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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1992.97
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1828.11
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9
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3702.55
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3432.74
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8
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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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7733.16
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6512.08
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19
|
15146.25
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12650.69
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20
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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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3430.43
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2882.83
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19
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6708.87
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5457.06
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23
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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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4302.73
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3629.25
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19
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8437.38
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7193.63
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17
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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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1550.65
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2058.55
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-25
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3291.29
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4277.48
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-23
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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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2752.08
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1570.70
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75
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5146.09
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2916.15
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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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764.32
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345.48
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121
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1449.50
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477.49
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204
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632.71
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-740.59
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-185
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PAT
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1987.76
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1225.22
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62
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3696.59
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2438.66
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52
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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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63.8
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39.4
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59.36
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39.16
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42.4
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31.7
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Adj BV (Rs)
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328.4
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239.0
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328.4
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239.0
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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
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Source: Capitaline Corporate
Database
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