Indian Bank Q3 net profit doubles to Rs 1,396 cr as bad loans decline

State-owned Indian Bank on Wednesday reported nearly two-fold jump in profit at Rs 1,396 crore in the quarter ended December 2022, driven by increase in interest income and decline in bad loans.

The net profit of Chennai-based lender stood at Rs 690 crore in the same quarter of the preceding financial year.

Total income increased to Rs 13,551 crore in the quarter from Rs 11,482 crore in the year-ago period, the bank said in a regulatory filing.

At the same time, Net Interest Income increased by 25 per cent to Rs 5,499 crore as against Rs 4,395 crore in the same quarter a year ago.

On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 6.53 per cent of gross advances as compared to 9.13 per cent at the end of the third quarter of 2021-22.

Net NPAs too eased to 1 per cent from 2.72 per cent in the same quarter a year ago.

As a result, provisions for bad loans declined significantly to Rs 1,474 crore from Rs 2 439 crore in the same period a year ago.

The capital adequacy ratio inched up to 15.74 per cent in December quarter as against 15.47 per cent.

Net Interest Margin increased to 3.74 per cent in December 2022 from 3.03 per cent in December 2021.

Provision Coverage Ratio improved by 810 basis points to 93.59 per cent from 85.49 per cent in December 2021.

Total business recorded a growth of 9 per cent reaching the level of Rs 10,48,772 crore at the end of third quarter as against Rs 9,63,007 crore in December 2021.

Advances grew by 13 per cent to Rs 4,51,658 crore while deposits increased by 6 per cent to Rs 5,97,114 crore at the end of third quarter ended December 2022.