Indian Bank Net profit Up By 41% YoY In Q1FY24

Indian Bank announced its financial results for the Quarter Ended June 30, 2023, the company on Thursday announced through an exchange filing.

Key Highlights (Quarter ended Jun 2023 over Jun 2022)

Net Profit up by 41percent YoY at ₹1709 crore in June 2023 from ₹1213 crore in June 2022. Profit Before Tax up by 78 percent YoY at ₹2394 crore in June 2023 from ₹1345 crore in June 2022. Operating Profit grew by 16 percent YoY at ₹4135 crore in June 2023 from ₹3564 crore in June 2022.

Net Interest Income increased by 26 percent YoY to ₹5703 crore in June 2023 from ₹4534 crore in June 2022. Fee based income grew by 7 percent YoY to ₹671 crore in June 2023. Cost-to-Income Ratio stood at 44.22 percent in June 2023.

Domestic NIM improved to 3.61 percent in June 2023 from 3.10 percent in June 202. Return on Assets (RoA) improved to 0.95 percent in June 2023 from 0.73 percent in June 2022. Return on Equity (RoE) increased to 17.88 percent in June 2023 from 14.18 percent in June 2022.

Total Business recorded a YoY growth of 9 percent reaching the level of ₹1100943 crore in June 2023 from ₹1009454 crore in June 2022. Advances increased by 13percent YoY to ₹479404 crore in June 2023 from ₹425203 crore in June 2022.

RAM (Retail, Agriculture & MSME) advances grew by 13 percent YoY to ₹276435 crore in June 2023 from ₹244247 crore in June 2022. RAM contribution to gross domestic advances is 61 percent. Retail & Agri advances grew by 16percent YoY each while MSME advances grew by 7percent YoY. Home Loan (Including mortgage) grew by 14percent YoY, Auto Loan by 29 percent YoY and Personal Loan by 52percent YoY.

Deposits grew by 6 percent YoY and reached to ₹621539 crore in June 2023. CASA deposits recorded a YoY growth of 5 percent and stood at ₹250242 crore in June 2023. The share of CASA to total deposits stood at 40percent.

GNPA decreased by 266 bps YoY to 5.47 percent in June 2023 from 8.13percent in June 2022, NNPA reduced by 142 bps YoY to 0.70percent from 2.12 percent in June 2022.

Provision Coverage Ratio (Crore, including TWO) improved by 702 bps YoY to 95.10 percent from 88.08 percent in June 2022. Capital Adequacy Ratio stood at 15.78 percent. CET-I & Tier I Capital at 12.31percent & 12.88 respectively.

Network

The Bank has 5798 domestic branches including 3 Digital Banking Units (DBUs), out of which 1970 are Rural, 1517 are Semi-Urban, 1168 are Urban & 1143 are in Metro category.

The Bank has 3 overseas branches & 1 IFSC Banking Unit (IBU). The Bank has 4804 ATMs & BNAs and 10805 number of Business Correspondents (BCs).

Digital Banking

Transactions through ATM, BNA & Digital channels improved by 7 percent YoY in Q1FY24. Mobile Banking users increased by 36 percent YoY.

UPI users and transactions increased by 33 percent YoY and 85 percent YoY respectively. During Q1FY24, the Bank has launched various Digital Journeys under its Digital Transformation Programme.