State-owned Indian Bank reported a 34% YoY growth in its standalone Profit After Tax (PAT) to Rs 690 crores for the quarter ended on December 2021. The bank had a profit of Rs 514 crores for the corresponding period last year.
Net Interest Income grew marginally by 2% to Rs 4,395 crores. Its operating profits grew 16% as Non-interest income surged 36% to Rs 1,556 crores. Its Net Interest Margin declined 10 bps to 3.03%. Gross NPA ratio stood at 9.13% and Net NPA was 2.72%, both of them higher than last year.
“During the quarter our operating profit grew 16 per cent. This was driven by growth in NII and other income. Our fee income rose by 11 per cent, forex income by 32 per cent and recovery in bad debts also increased by 111 per cent,” CEO and MD S.L.Jain said.
However, the bank’s total provisions increased 11% so they aren’t inflating profits by decreasing their provisions. The advances grew 3% during the quarter as it estimates an 8-10% growth in credit. The stock trades near the level of Rs 155 as it fell 5.6% yesterday and fell over 2% today to hit a low of Rs 155.30 per share.
Highlight by Aman Agarwal.