Indian Bank Q2 profit up by 13% to stand at Rs 1,225 cr

New Delhi: Indian Bank on Thursday reported a 13 percent rise in net profit at Rs 1,225 crore for the September quarter of 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. Total income in the quarter increased to Rs 12,538 crore from Rs 11,440.42 crore in the same period a year ago, Indian Bank said in a regulatory filing. Net interest income during the quarter was higher by 15 percent to stand at Rs 4,684 crore. Also, its fee income increased by 18 percent to stand at Rs 723 crore.

The asset quality of the bank improved as gross non-performing assets (NPAs) fell to 7.30 percent of gross advances (equivalent to Rs 31,959 crore) as on September 30 from 9.56 percent (Rs 36,886 crore) by the end of the same period, a year ago.

Similarly, net NPAs or bad loans came down to 1.50 percent (Rs 6,174 crore) from 3.26 percent (Rs 11,749 crore).

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Indian Bank: Provisions for bad loans, contingencies kept higher at Rs 2,404 cr in Q2

However, total provisions for bad loans and contingencies were kept higher at Rs 2,404 crore for the quarter, which were up by 10 percent from Rs 2,187 crore in the year-ago period.

Also, the bank's recovery from bad debts fell by 39 percent from a year ago to Rs 478 crore in September 2022 quarter.

The lender had fresh slippages to the tune of Rs 2,379 crore during Q2FY23, down from Rs 3,952 crore in the year- ago period.

Among other key ratios, the cost of income ratio improved to 44.27 percent from 45.85 percent and yield on advances moved up to 7.48 percent from 6.98 percent.

However, cost of deposits was higher at 4.02 percent against 3.86 percent and cost of funds were up at 4.05 percent versus 3.89 percent.

The stock of Indian Bank settled at Rs 250.50 on BSE, up 2.47 percent from the previous close.

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