CHENNAI: Chennai-based Indian Bank Tuesday reported a net loss of Rs 218 crore in the fourth quarter of the fiscal 2020 even as it reported robust performance for the full year. Its net profit zoomed 134 per cent in FY20.
The public sector lender reported a net loss of Rs 218 crore for the quarter ended March 31, 2020, whencompared to a net loss of Rs 190 crore in the year-ago quarter, mainly due to higher provisions. Operating profit was higher by 37 per cent at Rs 1,703 crore and provisions were also higher at Rs 1,921 crore, up 37 per cent as against Rs 1,435 crore in Q4 FY19. Net profit for FY20 stood at Rs 753 crore, the bank said.
Total income increased to Rs 24,717 crore registering a y-o-y growth of 17 per cent. Net interest income rose by 14 per cent to Rs 2,003 crore in Q4 FY20 as against the same period in the corresponding year while, net non-interest income grew by 48 per cent.
“Indian Bank has posted yet another year of strong performance. The bank’s business grew 8 per cent to touch the Rs 4.66 lakh crore mark, on the back of credit growth of 10 per cent (Rs 2.06 lakh crore) and deposits growth of seven per cent (Rs 2.6 lakh crore). Growth in advances was led by the retail sector, which grew at 16 per cent and well supported by the agriculture and MSME sector, growing 14 per cent and 13 per cent, respectively. Overseas advances also grew by 11 per cent,” said Padmaja Chunduru, MD and CEO. She further highlighted that asset quality metrics of the bank registered good improvement with recovery from bad debts.
Gross NPAs fell to 6.87 per cent from 7.11 per cent posted in a year ago quarter. Net NPAs, too, declined to 3.13 per cent. Recovery from bad debts improved by 65 per cent. For FY21, the bank is targeting
an overall growth of 11 per cent in both deposits and advances, Chunduru added.