Indian Bank has announced a significant increase in its net profit for the quarter ending in March 2023, with a growth of 47 percent. Furthermore, its total profit for the fiscal year 2022-23 has surpassed ₹5,000 crore. The bank's asset quality has shown continuous improvement, and the board has recommended a dividend of ₹8.60 per equity share (equivalent to 86 percent) for the financial year 2022-23. Additionally, the board has approved a capital raise of approximately ₹7,000 crore.

 

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Based in Chennai, the bank has achieved a net profit of ₹1,447 crore for the quarter ending on March 31, 2023, in comparison to ₹984 crore in the corresponding quarter of the previous year. This growth can be attributed to a robust increase in operating profit, a rise in non-interest income, and lower provisions. The operating profit for Q4 FY23 has surged by 47 percent to reach ₹4,016 crore (compared to ₹2,738 crore in Q4 FY22). Interest income has grown by 24.5 percent, amounting to ₹12,244 crore (₹9,832 crore previously), while non-interest income has increased by 27 percent, reaching ₹1,994 crore (₹1,573 crore previously). Net interest income has reported a growth of 29 percent, reaching ₹5,508 crore (compared to ₹4,255 crore). The provisions for non-performing assets (NPA) were lower at ₹1,040 crore in the March 2023 quarter, in contrast to ₹2,046 crore in the March 2022 quarter. Fresh slippages were also reduced to ₹2,566 crore from ₹3,298 crore in Q4 of FY22. The gross NPA decreased to 5.95 percent in the March 2023 quarter, compared to 6.53 percent in the December 2022 quarter and 8.47 percent in the March 2022 quarter. Furthermore, the net NPA has dropped to 0.90 percent, down from 1 percent in the December 2022 quarter and 2.27 percent in the same quarter of the previous year.

 

For the full fiscal year ending on March 31, 2023, Indian Bank has achieved a net profit exceeding ₹5,000 crore, reaching ₹5,282 crore, compared to ₹3,945 crore in FY22. The operating profit has grown to ₹15,271 crore (₹12,717 crore previously), while interest income stood at ₹44,942 crore (₹38,856 crore in FY22). Net interest income has increased to ₹20,225 crore (₹16,728 crore previously), and non-interest income has risen to ₹7,143 crore (₹6,915 crore previously). S L Jain, the Managing Director and CEO of the bank, has stated that all credit segments, including retail, agriculture, MSME, corporate, and mid-corporate, have displayed healthy growth, while NPAs have continued to decline every quarter. The total deposits have reached ₹6,21,166 crore (₹5,93,618 crore in FY22), and total advances have amounted to ₹4,73,586 crore (₹4,15,628 crore in FY22).

 

The retail, agriculture, and MSME (RAM) loans have witnessed growth rates of 13 percent (reaching ₹91,086 crore), 16 percent (reaching ₹1,01,937 crore), and 7 percent (reaching ₹79,656 crore), respectively. These three segments combined account for 61.43 percent of the gross domestic advances.

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