Indian Bank posts Rs 412 cr net profit in Q2

Chennai, Oct 22 (SocialNews.XYZ) Indian Bank on Thursday reported a net profit of Rs 412 crore for the second quarter of FY21 as against a net loss of Rs.1,755 crore during the same period last year, said a top bank official.

Managing Director and CEO Padmaja Chunduru also said: "The consolidation of the amalgamation (Allahabad Bank merged with Indian Bank with effect from April 1), is progressing very satisfactorily with more than 100 offices merged or rationalised so far."

According to her, centralisation of loan processing and information technology integration is on track.

About the results, Chunduru said: "This has been a quarter of strong growth in all key parameters. The Bank has recorded 40 per cent growth in operating profit and earned net profit of Rs.412 crores during the quarter. CASA (current account and savings account deposits) is at a healthy 41 per cent, net interest margin at 3.06 per cent has seen 23 basis points growth over last quarter."

The net interest income of Indian Bank rose 32 per cent to Rs 4,144 crore, while the non-interest income went up by 29 per cent to 1,611 crore owing to income from fee, forex, treasury operations and recovery of bad debts.

According to her, the gross non performing assets (GNPA) and the net NPA (NNPA) have improved to 9.89 per cent and 2.96 per cent.

Chunduru said the bank posted growth in all key parameters during the period under review.

She expects the credit growth to be between 8-10 per cent this fiscal.

The Bank's total Capital Adequacy Ratio (CAR) as per Basel III guidelines was healthy at 13.64 per cent as at Q2FY21 vs 13.45 per cent as of Q1 as against regulatory requirement of 10.875 per cent.

Source: IANS