NEW DELHI: Public sector lender Indian Bank on Monday reported a 47 per cent rise in net profit to Rs 1,447 crore for the March quarter, helped by a decline in bad loans and a healthy growth in interest income. During the quarter, the bank’s total income increased to Rs 14,238 crore against Rs 11,405 crore a year ago, Indian Bank said in a statement.
Interest income grew to Rs 12,244 crore during the quarter from Rs 9,832 crore in the corresponding quarter of the preceding financial year. Gross non-performing assets (NPAs) were reduced to 5.95% of gross advances as of March 31, 2023, from 8.47% by the end of March 2022. Net NPAs also came down to 0.90% of the advances from 2.27% a year earlier.
The fall in the bad loans ratio helped reduce the provisions towards NPAs for the fourth quarter of FY23 to Rs 1,040 crore compared to Rs 2,046 crore in the year-ago period. The capital adequacy ratio of the bank declined marginally to 16.49% from 16.53% at the end of March 2022. The bank’s board has recommended a dividend of Rs 8.60 per share or 86% of Rs 10 face value for the financial year ended March 31, 2023.
Bad loans ratio helps cut down on provisions
The fall in the bad loans ratio helped reduce the provisions towards non-performing assets for the fourth quarter of the financial year 2022-23 to Rs 1,040 crore compared to Rs 2,046 crore in the year-ago period.