Home / Companies / News /  Indian Bank Q2 profit rises 164% to 1,089 cr; NII drops to 4,083 cr
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Indian Bank reported a standalone net profit of 1,089.17 crore for the quarter ended September 30, 2021. This marks a growth of around 164 per cent on annual basis, as compared to 412.28 crore seen as on September 30, 2020, showed financial results shared by the lender with stock exchanges.

Net interest income (NII), the difference between interest earned and interest expended, slipped to 4,083.49 crore in Q2 FY22 from 4,144.04 crore in Q2 FY21. Operating profit during the quarter under review was 3,275.49 crore, as opposed to 2,941.74 crore in the year-ago period.

Operating profit margin improved to 28.63 per cent during September quarter this year, as opposed to 25.33 per cent in the same quarter last year. Net profit margin increased almost threefold to 9.52 per cent from 3.55 per cent in the year-ago period.

Provisions and contingencies for Q2FY22 were at 2,187 crore, as against 2,530 crore for the corresponding quarter of previous year. The state-run lender made provisions of 2,215.58 crore for non-performing assets during the period. This was higher than 1,880.19 crore seen in the corresponding period a year ago.

Non-performing loan provision coverage ratio for September quarter was 83.32 per cent, compared to 82 per cent for the quarter before that, the bank said in its statement.

On asset quality front, percentage of gross NPA as part of gross advances declined to 9.56 per cent from 9.89 per cent. Percentage of net NPAs also fell to 3.26 per cent from 2.96 per cent.

“While there has been an improvement in the economic activity since the easing of lockdown measures, the slowdown may lead to a rise in the number of customer defaults and resultant increase in the provisions there against. Considering the regulatory actions, government intervention to support the economic recovery, the bank expects realisable value of the assets not to be significantly impacted," Indian Bank stated.

Advances grew by 5 per cent to 38,5730 crore in Q2 FY22 from 36,5896 crore a year ago, primarily driven by growth in RAM sector (13 per cent) of which growth in Retail, Agriculture and MSME was 14 per cent, 16 per cent, and 8 per cent respectively.

Total deposits grew by 10 per cent an annual basis, and stood at 5,51,472 crore in September 2021 as against 5,01,956 crore in September 2020.

CASA deposits grew by 8 per cent YoY, and touched 2,25,309 crore in Q2FY22. Share of CASA to total deposits stood at 41 per cent in Q2FY22. Current account deposits grew by 14 per cent and savings account deposits by 8 per cent YoY in Q2FY22.

Indian Bank shares ended the trade on Thursday at 174.35, falling 15.65 points or 8.24 per cent on BSE

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