Indian Bank clocks 41 per cent jump in net profit to Rs 2,403 crore for April-June quarter

New Delhi, July 29 (SocialNews.XYZ) The Indian Bank on Monday reported a 40.6 per cent jump in net profit to 2,403.42 crore for the April-June quarter of the current financial year, from Rs 1,709 crore in the same quarter of 2023-24.

The asset quality of the bank also improved during the quarter with gross non-performing assets (NPA) of the bank declining to 3.77 per cent of total loans compared to 5.47 per cent in the year-ago period.

Net NPA ratio eased to 0.39 per cent from 0.70 per cent in the year-ago period. In absolute terms, Indian Bank’s gross NPA fell to Rs 20,302.16 crore as on June 30, from Rs 26,226.92 crore in the same quarter last year. Similarly, the net NPA of the bank declined to Rs 2,026.59 crore during the quarter from Rs 2,222.58 crore in the same period last year.

As a result, provisions for bad loans declined to Rs 896 crore against Rs 930 crore earmarked during the same quarter a year ago.

The capital adequacy ratio of the bank also improved to 16.47 per cent compared to 15.78 per cent on June 30, 2023. Indian bank also recorded a robust double-digit increase in deposits during the quarter. Total deposits went up by 10 per cent to Rs 6.81 lakh crore, as compared to Rs 6.21 lakh crore in the corresponding quarter last year. Both CASA & Savings deposits grew by 6 per cent.

The bank’s gross advances increased by 12 per cent to Rs 5.40 lakh crore in the April-June quarter compared to Rs 4.8 lakh crore in the same quarter last year. Retail, Agriculture & MSME advances grew by 13 per cent on-year to Rs 3.13 lakh crore as on June 30, from Rs 2.76 lakh crore as on June 30, 2023. Home loans (including mortgage) grew by 13 per cent year-on-year while auto loans recorded a 55 per cent surge.

Priority sector advances stood at 43 per cent of adjusted net bank credit at Rs 1.80 lakh crore as on June 30, as against the regulatory requirement of 40 per cent.

Source: IANS