Indian Bank posts 4% rise in net profit to Rs 1,311 crore in first quarter

State-run Indian Bank has posted a 4 per cent increase in net profit for the first quarter of the financial year 2022-23 to Rs 1,311 crore as compared with Rs 1,259 crore during the same period during the last financial year.
 
Total income of the bank during the April-June quarter of 2022-23 also increased by 3 per cent to Rs 11,898 crore from Rs 11,553 crore in the year ago period. The bank’s operating profit for June 2022 was seen up by 4 per cent at Rs 3,575 crore from Rs 3,435 crore in June 2021.
 
The gross non-performing assets decreased by 156 basis points (bps) to 8.13 per cent of the gross advances as of June 2022, from 9.69 per cent during the same time last year. Its net non-performing assets also reduced by 135 bps to 2.12 per cent from 3.47 per cent in June 2021. Non-performing asset provision coverage ratio improved by 608 bps to 88.08 per cent during the first quarter of 2022-23 from 82 per cent in Q1 of 2021-22.
 
During the period under review, the net interest income increased by 13 per cent to Rs 4,534 crore from Rs 3,995 crore during the same time last financial year. Non-Interest income (excluding treasury income) grew by 37.67 per cent to Rs 1,736 crore in June 2022 from Rs 1,261 crore during the same quarter last financial year.
 
Deposit increased by 8 per cent year on year and reached to Rs 5,84,251 crore in April to June quarter of 2022. CASA also grew by 8 per cent. Advances increased by 9 per cent to Rs 4,25,203 crore during the quarter, from Rs 3,89,626 crore in June 2021.
 
“The core operations of the bank have contributed to this growth. This is because our retail credit has gone up by 14 per cent, housing loan by 11 per cent, auto loan by 22 per cent, personal loan by 32 per cent and gold loan by 42 per cent. Along with this CASA has grown by 8 per cent. So the result is increase in NII and other income,” said