Indian Bank Q1 FY25 results: Net profit rises 41% to Rs 2,403 crore

State-run Indian Bank has posted a 41 per cent rise in net profit during the first quarter of the current financial year to Rs 2,403 crore, compared to Rs 1,709 crore during the same period in 2023-24, owing to a dip in bad loans.

The Chennai-based bank has posted a 15 per cent rise in its total income to Rs 16,945 crore, compared to Rs 14,759 crore during the April to June quarter of 2023-24. The bank's gross non-performing asset (NPA) ratio stood at 3.77 per cent against 5.47 per cent in the year-ago period and 3.95 per cent in the March quarter. On the other hand, net NPA was seen at 0.39 per cent of the advances from 0.43 per cent in the March quarter and 0.70 per cent in the year-ago period. Hence, provisions for bad loans declined to Rs 896 crore against Rs 930 crore during Q1 FY24.

Its operating profit improved by 9 per cent year-on-year (Y-o-Y) to Rs 4,502 crore in June 2024 from Rs 4,135 crore in June 2023. Net Interest Income increased by 8 per cent Y-o-Y to Rs 6,178 crore in June 2024 from Rs 5,703 crore in June last fiscal.

Total deposits increased by 10 per cent Y-o-Y and reached Rs 6,81,183 crore in June 2024 as against Rs 6,21,539 crore in June 2023. Both CASA (current account savings account) and savings deposits grew by 6 per cent, while current deposits grew by 5 per cent Y-o-Y.

The Provision Coverage Ratio (PCR, including TWO) improved by 156 basis points to 96.66 per cent in June 2024 from 95.10 per cent in June 2023. The Slippage Ratio was contained to 1.50 per cent during the period, in comparison to 1.57 per cent last year. The bank's Capital Adequacy Ratio improved by 69 basis points to 16.47 per cent. The domestic CASA ratio stood at 41 per cent as of June 2024.

The bank's fee-based income grew by 17 per cent during the period under review to Rs 788 crore, compared to Rs 671 crore during the same time last fiscal. Return on Assets (RoA) was up by 25 basis points to 1.20 per cent from 0.95 per cent. Return on Equity (RoE) increased by 188 basis points to 19.76 per cent from 17.88 per cent.

Yield on Advances (YoA) increased by 16 basis points to 8.69 per cent from 8.53 per cent in June 2023. Yield on Investments (YoI) increased by 43 basis points to 7.15 per cent in June 2024 from 6.72 per cent in June 2023.