Indian Bank reports 34% rise in net profit to Rs 690 crore in Q3

The total income during October-December 2021-22 grew to Rs 11,481.80 crore against Rs 11,167.86 crore in the year-ago period.

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On Monday, the Indian Bank reported a jump of 34 per cent in standalone profit after tax (PAT) at Rs 690 crore in the third quarter ended on Dec 31, 2021, as compared to Rs 514 crore for the year-ago period.

According to the regular filing, total income during October-December 2021-22 grew to Rs 11,481.80 crore against Rs 11,167.86 crores in the year-ago period.

In addition to this, the gross non-performing assets ratio raised to 9.13 per cent against 9.04 per cent. Net NPAs stood at 2.72 per cent against 2.35 per cent. Fresh slippages during the quarter were at Rs 2,732 crore. Net interest income (NII) marginally increased by 2 per cent to Rs 4,395 crore against Rs 4,314 crore in the year-ago period.

“All components including fee income and forex income of non-interest income have reported growth during the December 2021 quarter,” stated Shanti Lal Jain, MD & CEO of Indian Bank. Operating profit rose 16 per cent to Rs 3,288 crore. Non-interest income surged 36 per cent to Rs 1,556 crore. Fee income and forex income grew 11 per cent and 32 per cent, respectively.

The bank’s recovery of bad debts grew by 111 per cent to Rs 278 crore in the quarter. Domestic net interest margins (NIM) plunged by 10 basis points to 3.03 per cent from 3.13 per cent in the year-ago quarter.

“Collection efficiency has improved from 88 per cent in the March 2021 quarter to 94 per cent in December 2021 quarter. With the economy showing improvements and increase in credit off-take, we hope to register 8-9 per cent growth in this fiscal,” Jain highlighted.

Shares of the public lender tanked down by 6.06 per cent at Rs 158.25 apiece on the national stock exchange in Monday’s closing session.