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Indian Bank has
reported 55% growth in net profit at Rs 2247.00 crore for the quarter ended
March 2024 (Q4FY2024). The bank has posted 9% growth in net interest income
(NII), while the core fee income of the bank also improved 6% in Q4FY2024. The
Net Interest Margin (NIM) of the bank eased to 3.44% in Q4FY2024 compared to 3.59%
in the corresponding quarter of previous year.
On business front, the
bank as has posted 12% growth in business with 13% surge in loan book. The
asset quality of the bank has further improved in Q4FY2024. Bank has raised the
credit to deposit ratio to 77.6% at end March 2024 from 76.2% at end March
2023. CASA ratio of the bank has moved up sequentially to 40.8% at end March
2024, while eased from 42.0% at end March 2023.
Asset quality improves: The bank has further
improved asset quality in Q4FY2024.
The fresh slippages of
loans stood at Rs 1268 crore in Q4FY2024 compared with 1667 crore in previous
quarter and Rs 2566 crore in the corresponding quarter last year.
The recoveries and
upgradations of NPAs stood at Rs 898 crore and the write-off of loans was at Rs
2051 crore in Q4FY2024.
The standard
restructured loan book of the bank stood at Rs 6238 crore end March 2024.
Provision coverage ratio
improved to 96.34% at end March 2024 compared to 95.90% a quarter ago and
93.82% a year ago.
The capital adequacy
ratio of the bank stood at 16.4% with Tier I ratio at 14.0% at end March 2024.
The risk weighted assets
of the bank has increased 18% YoY to Rs 392246 crore end March 2024,
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Asset Quality
Indicators: Indian Bank
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Mar-24
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Dec-23
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Sep-23
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Jun-23
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Mar-23
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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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21106.31
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22786.52
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24487.53
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26226.92
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28179.53
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-7
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-25
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Net NPA (Rs Crore)
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2222.58
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2578.72
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2825.85
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3197.55
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4043.07
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-14
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-45
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% Gross NPA
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3.95
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4.47
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4.97
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5.47
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5.95
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-52
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-200
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% Net NPA
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0.43
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0.53
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0.60
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0.70
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0.90
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-10
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-47
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% PCR
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96.34
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95.90
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95.64
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95.10
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93.82
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44
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252
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% CRAR - Basel III
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16.44
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15.58
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15.53
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15.78
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16.49
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86
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-5
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% CRAR - Tier I -
Basel III
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14.03
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12.88
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12.63
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12.88
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13.48
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115
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55
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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 12% YoY to Rs 1221773 crore end March 2024, driven by 13% surge
in advances to Rs 533773 crore. Deposits rose 11% to Rs 688000 crore at end
March 2024.
CASA deposits ratio rises
sequentially: The CASA deposits of the bank increased 8% YoY to Rs 280487 crore
at end March 2024. The current account deposits increased 9% to Rs 38993 crore,
while saving account deposits moved up 7% to Rs 241494 crore end March 2024.
The CASA ratio declined to 40.8% at end March 2024 compared to 42.0% at end
March 2023, while improved from 39.7% a quarter ago. The term deposits have
increased 13% to Rs 407513 crore end March 2024. Overseas deposits have
increased 99% to Rs 26174 crore end March 2024.
Healthy loan growth: Advances growth was
driven by retail loans rising 15% YoY to Rs 104735 crore at end March 2024,
while credit to agriculture increased 19% to Rs 121062 crore and MSME 6% to Rs
84121 crore at end March 2024. The corporate credit has increased 10% to Rs
188242 crore end March 2024. The overseas credit has jumped 20% to Rs 35613
crore end March 2024.
Investment book of the bank increased 14% YoY to Rs 214663 crore at end March
2024. The SLR book moved up 9% to Rs 162527 crore, while non SLR book jumped 33%
to Rs 52136 crore at end March 2024. The AFS book jumped 37% to Rs 62325 crore,
while HTM book rose 6% to Rs 151225 crore at end March 2024. The duration of
the overall investment portfolio stood at 2.73 years end March 2024 compared
with 1.98 years at end March 2023.
Margins improve qoq: The bank has showed 69
bps YoY jump in cost of deposits to 5.13%, while yield on advances increased 64
bps YoY to 8.81% in Q4FY2024. Thus, the NIM has declined 15 bps YoY, while rose
3 bps qoq to 3.44% in Q4FY2024
Branch expansion: The bank has added 12
branches and 38 ATMs in Q4FY2024, taking overall tally to 5847 branches and
4937 ATM`s end March 2024.
Book value of the bank stood at Rs
389.1 per share at end March 2024, while the adjusted book value (net of NNPA
and 25% of restructured advances) was Rs 361.0 per share at end March 2024.
Quarterly Performance
NII rises as NIM
improves qoq: Bank has recorded 19% increase in the interest earned at Rs
14624.49 crore, while interest expenses increased 28% to Rs 8609.09 crore in
Q4FY2024. NII improved 9% to Rs 6015.40 crore in the quarter ended March 2024.
Moderate growth in core
fee income, treasury income jumps: Bank has posted 6% growth in core fee income to Rs 970 crore,
while forex income 78% to Rs 82 crore and the treasury income surged 135% to Rs
193 crore. Further, the income jumped 6800% to Rs 245 crore, supporting 13% rise
in the overall non-interest income to Rs 2262.53 crore in the quarter ended
March 2024. However, the recoveries declined 10% to Rs 773 crore.
Expenses ratio rises: The operating expenses
of the bank increased 14% to Rs 3972.95 crore, as other expenses moved up 6% to
Rs 1339.61 crore, while employee expenses increased 19% to Rs 2633.34 crore in
Q4FY2024. Cost to income ratio rose to 48.0% in Q4FY2024 compared with 46.5% in
Q4FY2023. The Operating Profit increased 7% to Rs 4304.98 crore.
Provisions and
contingencies decline: The bank has showed 51% decline in provisions to Rs 1247.75 crore.
The loan loss provisions declined 13% to Rs 900 crore, while standard asset provisions
fell 91% to Rs 137 crore. The investment provisions were at Rs 49 crore and
other provisions Rs 162.00 crore.
Effective tax rate jumped to 26.5% in Q4FY2024 from 0.4% in Q4FY2023. Net Profit rose by 55%
YoY to Rs 2247.00 crore during quarter ended March 2024.
Financial Performance
FY2024:
Bank has posted 53%
increase in net profit to Rs 8062.94 crore in the year ended March 2024
(FY2024). The net interest income increased 15% to Rs 23273.29 crore, while
non-interest income moved up 10% to Rs 7866.72 crore, pushing up net total
income by 14% to Rs 31140.01 crore in FY2024. The operating expenses increased
18% to Rs 14300.46 crore, while provision and contingencies dipped 37% to Rs
5888.41 crore, allowing profit before tax to increase 85% to Rs 10951.14 crore
in FY2024. The cost-to-income ratio rose to 45.9% in FY2024 compared to 44.2%
in FY2023. An effective tax rate increased to 26.4% in FY2024 compared to 10.7%
in FY2023. The net profit has increased 53% to Rs 8062.94 crore in FY2024.
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Indian Bank: Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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14624.49
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12244.42
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19
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55614.78
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44942.21
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24
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Interest Expended
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8609.09
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6736.10
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28
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32341.49
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24716.75
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31
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Net Interest Income
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6015.40
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5508.32
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9
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23273.29
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20225.46
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15
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Other Income
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2262.53
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1993.87
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13
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7866.72
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7143.06
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10
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Net Total Income
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8277.93
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7502.19
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10
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31140.01
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27368.52
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14
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Operating Expenses
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3972.95
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3486.62
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14
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14300.46
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12097.90
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18
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Operating Profits
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4304.98
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4015.57
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7
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16839.55
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15270.62
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10
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Provisions &
Contingencies
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1247.75
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2563.00
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-51
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5888.41
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9356.21
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-37
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Profit Before Tax
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3057.23
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1452.57
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110
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10951.14
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5914.41
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85
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Provision for tax
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810.23
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5.29
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15216
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2888.20
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632.71
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356
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PAT
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2247.00
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1447.28
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55
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8062.94
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5281.70
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53
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EPS*(Rs)
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66.7
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43.0
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59.9
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39.2
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Adj BV (Rs)
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361.0
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281.1
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361.0
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281.1
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* Annualized on current equity of
Rs 1346.96 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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