Indian Bank reported a 47 per cent rise in net profit for the March 2023 quarter, while its FY23 profit exceeded Rs 5000 crore. The quality of the bank’s assets continues to improve.

The board has recommended a dividend of Rs 8.60 per equity share (86 per cent) for 2022-23. It also approved a capital increase of around Rs 7,000 crore.

The Chennai-based bank has posted a net profit of Rs 1,447 crore in the quarter ended 31 March 2023, compared with Rs 984 crore in the year-ago quarter, thanks to a sharp rise in operating profit. , increase in non-interest income, and lower provisions.

Operating profit in Q4 FY23 rose 47 percent to ₹4016 crore (₹2738 crore in Q4 FY22).

Interest income grew 24.5 percent to ₹12,244 crore (₹9,832 crore), while non-interest income grew 27 percent to ₹1,994 crore (₹1,573 crore).

Net interest income registered a growth of 29% to ₹5,508 crore (versus ₹4,255 crore).

NPA provisions were lower by Rs 1040 crore in the March 2023 quarter, compared to Rs 2046 crore in the March 2022 quarter. New slippages were lower at ₹2566 crore vs. to ₹3,298 crore in Q4 FY2022.

Gross NPA was less than 5.95% in the March 2023 quarter, compared to 6.53% in the December 2022 quarter and 8.47% in the March 2022 quarter.

Net NPA fell below one percent to 0.90 percent, down from 1 percent in the December 2022 quarter and 2.27 percent in the year-ago quarter.

For the full year ending 31 March 2023, the bank’s net profit surpassed the ₹5000 crore mark to sit at ₹5282 crore, up from ₹3945 crore in FY22. Operating profit grew to ₹15,271 crore (₹12,717 crore).

Interest income stood at ₹44,942 crore (₹38,856 crore in FY22). Net interest income rose to ₹20,225 crore (up from ₹16,728 crore), while non-interest income increased to ₹7,143 crore (₹6,915 crore).

“All credit segments – retail, agricultural, MSME, corporate and corporate midsize – are reporting healthy growth and NPAs continue to decline each quarter,” said SL Jain, MD and CEO of the bank.

Total deposits increased to ₹6.21,166 crore (₹5.93,618 crore in FY22), while total advances were ₹4.73,586 crore (₹4.15,628 crores in FY22).

Retail, Agricultural and MSME (RAM) Loans grew by 13% (to ₹91,086 crore), 16% (to ₹1,01,937 crore) and 7% (to ₹79,656 crore) , respectively. The three segments accounted for 61.43 percent of gross domestic advances.

The full recovery (cash plus upgrade) at Rs. 8,504 crore was higher than the new slippage of Rs. 6642 crore in FY23.

The coverage ratio of the provision for problematic assets stands at 93.82% as of March 31, 2023 (87.38% as of March 31, 2022).

The bank’s net worth grew to ₹37,431 crore as of March 31, 2023, compared to ₹33,625 crore as of March 31, 2022.

Also read:Indian Bank doubles its Q3 net profit, NPAs report big drop

The bank plans to raise equity capital by adding up to ₹4,000 crore (including premium) through various modes viz. QIP, FPO, rights issue, or a combination thereof. It also plans to raise AT 1/Tier-2 Capital by adding up to ₹3,000 crore through the issuance of Basel III compliant AT 1/Tier-2 perpetual bonds in one or more tranches during the current or subsequent fiscal years, it said. a statement. .

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