Indian Bank on Thursday reported that its net profit increased 13 per cent to Rs 1,225 crore for September quarter 2022-23 as provisions for bad loans fell. The bank had posted a net profit of Rs 1,089 crore for the year-ago period.
Indian Bank in its regulatory filing said that total income in the quarter increased to Rs 12,538 crore from Rs 11,440.42 crore in the same period a year ago.
Net interest income was 15 per cent higher to Rs 4,684 crore during the quarter. Fee income also rose 18 per cent to Rs 723 crore.
As gross non-performing assets (NPAs) fell from 9.56 per cent of gross advances (equivalent to Rs 36,886 crore) in same period a year ago to 7.30 per cent as of September 30, 2022 (Rs 31,959 crore), asset quality of the bank also improved.
Net NPAs or bad loans also came down to 1.50 per cent (Rs 6,174 crore) from 3.26 per cent (Rs 11,749 crore). However, total provisions for bad loans and contingencies were kept higher at Rs 2,404 crore for the quarter, up 10 per cent from Rs 2,187 crore in the year-ago period.
Also, the bank’s recovery from bad debts declined to Rs 478 crore in September 2022 quarter, down 39 per cent from a year ago. Bank had fresh slippages to the tune of Rs 2,379 crore during Q2FY23, down from Rs 3,952 crore in the year- ago period.
The cost of income ratio improved from 45.85 per cent to 44.27 per cent and yield on advances moved up from 6.98 per cent to 7.48 per cent. However, cost of deposits were higher at 4.02 per cent against 3.86 per cent and cost of funds were up at 4.05 per cent versus 3.89 per cent.