Indian Bank, a public sector institution, recorded a net profit of Rs 1,709 crore for the fourth quarter of FY21 on Friday. In the same quarter last year, the Chennai-based bank reported a net loss of Rs 1,641 crore. The bank’s total income was Rs 10, 648 crore, down from Rs 11,485 crore the previous year, a decline of 7%.
On April 1, 2020, Allahabad Bank and Indian Bank merged to form Indian Bank. As a result, the combined financials as of March 31, 2020, were calculated by adding the audited data of the two banks, according to Indian Bank.
All of the indicators, including business, profitability, asset quality, and capital, improved significantly in the fourth quarter, according to Padmaja Chunduru, MD & CEO of Indian Bank.
The bank’s net interest income increased by 1% in Q4FY21 to Rs 3,334 crore from Rs 3,310 crore in Q4FY20, but it declined by 23% sequentially. The net interest margin (NIM) fell by 33 basis points (bps) to 2.34 percent, down from 2.67 percent previously. Non-interest revenue increased to Rs 1,744 crore from Rs 1,728 crore due to greater profit on investment sales, forex income, and PSLC commission.
CASA deposits increased by 14% year over year (y-o-y), and CASA’s proportion of total deposits increased to 42 percent in March 2021, up from 41 percent a year earlier. CASA’s growth was fueled largely by a 32 percent rise in current account deposits and a 12 percent rise in savings account deposits year over year.
The bank’s asset quality improved in Q4, with gross nonperforming assets (NPAs) at 9.85 percent of gross advances in March 2021, down 154 basis points year over year from 11.39 percent in March 2020. The net NPA fell from 4.19 percent to 3.37 percent, a decrease of 82 basis points year over year. Its total capital adequacy ratio (CRAR) was 15.71 percent, up 244 basis points year over year. On a quarterly basis, it rose 165 basis points from 14.06 percent in Q3FY21.
Provisions and contingencies were Rs 839 crore vs Rs 4,042 crore, while operational expenses were Rs 2,530 crore vs Rs 2,637 crore, a 4 percent drop. Total business increased by 8% year on year, reaching Rs 9,28,388 crore in March 2021, up from Rs 8,57,499 crore in March 2020. Total deposits increased by 10% year on year to Rs 5,38, 071 crore, up from Rs 4,88, 835 crore the previous year. According to the bank, the priority sector portfolio climbed to Rs 1,30,274 crore from Rs 1,27,542 crore.
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