Indian Bank grows 26 per cent in 2nd quarter, focuses on Allahabad Bank absorption
CHENNAI: Prime focus is being given for the complete amalgamation of Allahabad Bank with Indian Bank, including the integration of human resources, and town hall meetings are being held across the country for the smooth transition, Indian Bank’s managing director and chief executive officer Padmaja Chunduru said while announcing the second-quarter results on Tuesday.
Indian Bank registered a robust 26 per cent growth at Rs 1,502 crore for the July-September quarter (Q2) of the financial year 2019-20, as against Rs 1,191 crore during the same period of the previous year. The net profit of the bank stood at Rs 359 crore in Q2FY20 as against Rs 150 crore in Q2FY19, up by 139 per cent, mainly on account of 72 per cent growth in other incomes, the bank said in a statement.
During the first half of the fiscal (HI), the bank’s net profit grew by 101 per cent at Rs 724 crore, against Rs 359 crore during H1FY19.
Its net interest income grew 7.63 per cent to Rs 1,863 crore in the second quarter of FY20.On asset quality, Chunduru said the gross non-performing assets were at 7.20 per cent of gross advances as on September 30, 2019, and increased by 4 basis points from 7.16 per cent as of September 30, 2018.
Debt recoveries improved by 31 per cent YoY in Q2FY20 and by 32 per cent YoY during H1FY20. The bank’s provisioning for bad loans declined to RS 720.90 crore for the July-September quarter, from Rs 752.47 crore in the year-ago period. Provisions and contingencies for Q2 rose to Rs 1,143 crore from Rs 1,041 crore a year ago, mainly due to higher provisioning towards income-tax. Provisioning during H1FY20 was at Rs 2,152 crore.