On a sequential basis, the bank had reported a net profit of Rs 365.37 crore for Q1FY20 compared to Rs 209.31 crore a year ago, a growth of 74.56%<\/span><\/figure>\n<\/div>\nChennai-headquartered Indian Bank on Wednesday reported a good set of numbers with net profit jumping 139% to Rs 359 crore for Q2FY20 against Rs 150 crore a year ago. The bank attributed the robust performance to the result of increased focus on business growth and asset quality with effective control over the fresh slippages, apart from rise in the other income. Total income was at Rs 6,045 crore, up 18% over Rs 5,129 crore a year ago.<\/p>\n
On a sequential basis, the bank had reported a net profit of Rs 365.37 crore for Q1FY20 compared to Rs 209.31 crore a year ago, a growth of 74.56%<\/p>\n
Padmaja Chunduru, MD & CEO, Indian Bank, said the bank has registered a strong set of numbers and registered good performance across all parameters. \u201cOur robust performance is attributed to focus on business growth and earnings, strict adherence to prudent lending norms coupled with our financial strength, including sustained efforts to keep NPAs under control. The recent amalgamation of Allahabad Bank with Indian Bank will give further momentum to our global vision and we hope the total business to propel faster. Given the efficiency of our operations, the merged entity will boost robust growth and emerge amongst the leading banks in the banking industry.\u201d<\/p>\n
Talking about the disbursements, she said currently the RAM (retail, agriculture and MSME) sector accounts for 61% of the loan book in which retail grew by 17%, agriculture by16% and MSME by 20%.<\/p>\n
She said the bank could effectively control fresh slippages by putting in stringent measures at various levels. In Q1, the slippage was at Rs 1,624 crore and in the December quarter last year, it was at Rs 1,769 crore and it dropped to Rs 741 crore in the quarter under review.
Gross non-performing assets (NPAs) as a percentage of gross advances, stood at 7.20% compared to 7.16% a year ago, an increase of 4 bps. Net NPA as a percentage reduced to 3.54% against 4.23% a year ago, with a reduction of 69 bps, she said. Provision coverage ratio stood at 68.06% as on September 30, 2019.<\/p>\n
She said net interest margin (NIM) declined by 9 bps and touched 2.92% against 3.01% a year ago. However, on a sequential basis, it improved by 7 bps from 2.85% to 2.92%. Net interest income (interest income less interest expenditure) rose by 8% to Rs 1,863 crore from Rs 1,731 crore .<\/p>\n
Other income (non-interest revenue) was at Rs 738 crore and rose 72% over the corresponding quarter of the previous year mainly on account of profit on sale of investments to the tune of Rs 249. 21 crore against Rs 4.97 crore a year ago.<\/p>\n
The bank\u2019s total capital adequacy ratio (CAR) as per Basel III guidelines, was healthy at 12.96% as on September 30, 2019 (12.73% as of September 30, 2018) against regulatory requirement of 10.875%. Taking into consideration, the capital infusion of Rs 2,534 crore from the Centre, CAR increased to 14.52%.<\/p>\n
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