MUMBAI: The Chennai-based public sector lender Indian Bank has reported a net profit of Rs 3,061.48 crore in the December quarter, registering a growth of 7.3% from Rs 2,852.36 crore in the year-ago period.
The bank’s key profitability gauge net interest income increased 7.5% to Rs 6,895 crore from Rs 6,414 crore, the bank said in exchange filing Thursday.
The bottom line growth also helped by lower provisions and contingencies which declined to Rs 857.02 crore from Rs 738.60 crore in September and from Rs 1,059.13 crore on-year. Provision coverage ratio improved by 19 bps to 98.28 from 98.09.
Asset quality improved sequentially in the quarter ended with gross non-performing assets declining to 2.23% from 2.60% and net NPAs dropping to 0.15% from 0.16%.
In absolute terms, gross NPAs came down 11.56% to Rs 14,268.38 crore from Rs 16,134.66 crore, and net NPA declined 1.56% to Rs 967.55 crore from Rs 982.98 crore, the bank said, adding the slippage ratio decreased to 0.69 in December from 0.79 in September, and from 0.78 in December 2024.
Capital adequacy ratio of the lender improved by 66 bps to 16.58. Of this CET-I improved by 127 bps to 14.54, Tier I capital improved by 77 bps to 14.54.
Gross advances increased 14.24% to Rs 6,38,848 crore from Rs 5,59,199 crore in December 2024 while total deposits increased by 12.62% and reached Rs 7,90,923 crore as against Rs 7,02,282 crore.
Current, savings and Casa deposits grew by 19.13%, 8.45%, and 9.86%, respectively. Domestic Casa ratio stood at 39.08% and the CD ratio stood at 80.77.
Indian Bank share price has gained 11.55% in one month, and 40% in the past six months. The PSU bank stock has jumped 69% in one year, and has delivered multi-bagger returns of 867% over the past five years. The Indian Bank counter jumped 5.7% to Rs 897 on Thursday.