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Indian Bank.

BSE: 532814 Sector: Financials
NSE: INDIANB ISIN Code: INE562A01011
BSE 00:00 | 03 Dec 142.60 -1.05
(-0.73%)
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146.60

HIGH

146.60

LOW

142.10

NSE 00:00 | 03 Dec 142.65 -1.05
(-0.73%)
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LOW

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OPEN 146.60
PREVIOUS CLOSE 143.65
VOLUME 82545
52-Week high 194.80
52-Week low 67.65
P/E 3.95
Mkt Cap.(Rs cr) 17,760
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 146.60
CLOSE 143.65
VOLUME 82545
52-Week high 194.80
52-Week low 67.65
P/E 3.95
Mkt Cap.(Rs cr) 17,760
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indian Bank. (INDIANB) - Director Report

Company director report

To

The Members

Your Directors have immense pleasure in presenting the Bank s Annual Report along withthe Audited Statement of Accounts and the Cash Flow statement for the year ended 31 Marchst 2021.

FINANCIAL HIGHLIGHTS

The major highlights of your Bank's performance during FY21 are as follows:

Resource mobilization &Advances:

(` in Cr)

Particulars 31.03.20* 31.03.21
Domestic Deposits 252792 529264
Of which Current 13059 31861
Savings 76525 195166
CASA 89584 227027
CASA Mix (%) 35.4 42.89
Overseas Deposits 7434 8807
Global Deposits 260226 538071
Domestic Advances (Net) 189696 353726
Overseas Advances (Net) 8191 10284
Total Advances (Net) 197887 364010
Total Business 458113 902081
Total Assets 310052 626005

*Figures are related to standalone Indian Bank financial results for pre-amalgamationperiod hence not comparable with post amalgamation financial results for the year endedMarch 31 2021.

• Domestic CASA increased to Rs 227027 Cr. In order to augment the CASAportfolio Bank has mobilised 1894191 new CASAaccounts during FY21.

• Domestic Core Term Deposits increased to Rs 301049 Cr in FY21. Reliance onhigh cost deposits (PDs and CDs) has declined significantly and their share to totaldeposits was at 0.18%.

• Priority Sector Advances were at `130274 Cr as on March 31 2021. Prioritysector as a percentage to quarterly average Adjusted Net Bank Credit (ANBC) for FY21 stoodat 43.38% as against the mandatory target of 40.00%.

• Agriculture Credit (Priority Sector) was at Rs 60869 Cr and the percentage toquarterly average ANBC stood at 19.84 % as against the mandatory target of 18.00%.

• Capital Adequacy Ratio (Basel III) was at 15.71% as at March 31 2021.

• Gross NPA and Net NPA stood at 9.85% and 3.37% respectively as on March 312021.

• Total recovery of NPAs during FY21 amounted to ` 4477 Cr.

• Total domestic branch network of the Bank increased to 6004 as on March 312021. Besides the Bank has 3 overseas branches taking the total branch network to 6007.

• Total number of ATMs & BNAs increased to 5428 as on March 31 2021 whichincludes 686 offsite ATMs/BNAs and 6 mobileATMs.

• As on March 31 2021 the Bank has installed Passbook Kiosks at 1231 locations.

INCOMEAND EXPENDITURE

(` in Cr)

Particulars 31.03.20* 31.03.21
Interest Earned 21405 39106
Interest Expended 13799 23440
Net Interest Income (NII) 7606 15666
Other Income 3313 6079
Of which Fee Income 1357 2368
Profit on sale of Investments 880 2124
Recovery of bad debts 261 618
Operating Revenue
(NII + Other income) 10919 21745
Operating Expenses 4421 10349
Of which Employee Expenses 2473 6378
Other operating Expenses 1948 3971
Operating Profit 6498 11396
Provisions 5745 8391
Of which Provisions for NPA 4336 7317
Provision for Standard advances 143 469
Provision for Tax 619 (99)
Net profit 753 3005

*Figures are related to standalone Indian Bank financial results for pre-amalgamationperiod hence not comparable with post amalgamation financial results for the year endedMarch 31 2021.

As on March 31 2021

• Total income of the Bank stood at Rs 45185 Cr with Interest Income at `39106Cr and other Income at Rs 6079 Cr.

• Bank s total expenditure stood at `33789 Cr with Interest Expenditure at Rs23440 Cr and Operating expenses at ` 10349 Cr.

• Bank registered an Operating Profit of Rs 11396 Cr and Net Profit Rs 3005 Cr

Key Ratios for Mar'21 are as under:

(in %)

Parameters Mar'20* Mar'21
Yield on Advances 8.46 7.45
Cost of Deposits 5.34 4.44
Return on Assets 0.26 0.50
Cost Income ratio 40.49 47.59
Average Business per employee
(` in lakh) 2287 2077
Profit per employee (` in lakh) 4.02 7.22

*Figures are related to standalone Indian Bank financial results for pre-amalgamationperiod hence not comparable with post amalgamation financial results for the year endedMarch 31 2021.

NETWORTH AND CRAR:

• Networth of the Bank stood at Rs 29812 Cr as on March 31 2021.

• As per Basel III norms the Capital to Risk weightedAssets Ratio (CRAR) was at15.71% as on March 31 2021 as against the regulatory requirement of 10.875%. The CET-Iratio was 11.27% as against the minimum requirement of 7.375%. The CRAR of Tier I capitalwas at 11.93% as of March 31 2021.

(in %)

As on
BASEL III Mar'20* Mar'21
CET- I 11.78 11.27
Tier- I Capital 12.08 11.93
Tier-II Capital 2.04 3.78
Total 14.12 15.71

*Figures are related to standalone Indian Bank financial results for pre-amalgamationperiod hence not comparable with post amalgamation financial results for the year endedMarch 31 2021.

RECRUITMENT /TRAINING

• As per Government guidelines pre-recruitment and pre-promotion trainings wereoffered to SC/ST employees during the process of direct recruitment and internalpromotions.

CHANGES IN THE BOARD DURING THE YEAR:

All the Directors have been appointed/nominated by the Govt. of India (GOI) exceptShareholder Directors.

• Shri K Ramachandran was appointed as Executive Director of the Bank vide GoIMinistry of Finance Dept of Financial Services Notification F.No.4/7/2018-BO.I dated18.03.2020 w.e.f. 01.04.2020.

• Shri Vinod Kumar Nagar was shareholder Director of the Bank upto 30.06.2020.

• Shri M K Bhattacharya was Executive Director of the Bank upto 30.11.2020.

• Dr Bharath Krishna Sankar was shareholder Director of the Bank upto 20.12.2020.He was reelected as Shareholder Director of the Bank for second term from 07.02.2021 to06.02.2024.

• Shri Salil Kumar Jha was Part time Non-Official Director of the Bank upto26.12.2020.

• Shri Imran Amin Siddiqui was appointed as Executive Director of the Bank videGoI Ministry of Finance Dept of Financial Services Notification F.No.4/3/2020-BO.I dated10.03.2021.

DIRECTORS'RESPONSIBILITY STATEMENT

The Directors confirm that in the preparation of the annual accounts for the year endedMarch 31 2021:

• The applicable accounting standards have been followed along with properexplanation relating to material departures if any;

• The accounting policies framed in accordance with the guidelines of the ReserveBank of India were consistently applied;

• Reasonable and prudent judgment and estimates were made so as to give a true andfair view on the state of affairs of the Bank at the end of the financial year and profitof the Bank for the year ended March 31 2021.

• Proper and sufficient care were taken for the maintenance of adequate accountingrecords in accordance with the provisions of applicable laws governing Banks in India; and

• The accounts have been prepared on a going concern basis.

ACKNOWLEDGEMENT

The Board expresses its deep sense of gratitude to the Government of India ReserveBank of India and Securities & Exchange Board of India for the valuable guidance andsupport received from them. The Board also thanks the financial institutions andcorrespondent Banks for their co-operation and support. The Board acknowledges theunstinted support of its customers and shareholders.

The Board places on record its appreciation for the valuable contribution made by Shri.Vinod Kumar Nagar Shri. M K Bhattacharya and Shri Salil Kumar Jha who ceased to bemembers during the year.

The Board places on record its appreciation for the dedicated services and contributionmade by members of staff for the overall performance of the Bank.

For and on behalf of Board of Directors

PADMAJA CHUNDURU MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER

.