Indian Bank reports PBT of Rs 614.22 cr in Q1, operating profit rises 23%

Indian Bank reported profit before tax (PBT) of Rs 614.22 crore in the quarter ended June 30, 2020 (Q1FY21). The first quarter numbers are not comparable year on year and quarter on quarter as they come after the merger (Indian Bank +Allahabad Bank).

The combined entities reported a total income of Rs 11,446 crore.
 

Operating profit grew by 23 per cent to Rs 2,753 crore for Q1FY21 as against Rs 2,234 crore for Q1FY20.
 

Padmaja Chunduru, MD & CEO, Indian Bank said, "This is a very satisfying performance in the first quarter post amalgamation".
 

The key parameters of income, cost efficiency and profitability have improved both year on year and quarter on quarter. The bank's asset quality has also improved.
 

The lender made upfront provisions in two accounts, to the tune of Rs 1,133 crore and also contingency provisions for Covid-19.

The accounts under moratorium are above 23 per cent and good progress being made on the collection front, month on month, Chunduru said.
 

The lender's GNPA improved to 10.90 per cent from 12.09 per cent in June 2019 and NNPA improved to 3.76 per cent from 4.68 per cent in June 2019.
 

Provision Coverage Ratio (PCR) improved to 80.52 per cent as against 74.35 per cent in Q1FY20. Excluding technical a write off, it improved to 68.09 per cent from 64.35 per cent, compared to the corresponding in the year ago period.
 

Chunduru said that fresh slippages are under control. Commenting on recovery, she said, the bank was targeting around Rs 4,500 crore during the year.
 

She said, global business increased by 7 per cent to Rs 8,55,895 crore with global deposits at Rs 4,89,109 crore (8% Y-o-Y) and Global Advance (gross) at Rs 3,66,787 crore (5% Y-o-Y). Current deposits grew by 7% to Rs 24152 core and aavings deposits by 12% to Rs.1,78,954 crore. Domestic CASA deposits recorded a growth of 11% with CASA share at 42% as against 40% in Q1FY20.
 

Meanwhile, Indian Bank has identified 21 properties for monetisation in the first phase with and expected realisable value of around Rs 450 crore. The bank is also looking for a strategic partner for IndBank Housing Ltd.