Even as the public sector lender Indian Bank reported an increase in net loss in the 4th quarter of FY20, its net profit zoomed 134 per cent for the full year. It also reported an improvement in its asset quality.

Net loss

The Chennai-headquartered bank reported a net loss of ₹218 crore for the quarter ended March 31, 2020, when compared to a net loss of ₹190 crore in the year-ago quarter

Though operating profit was higher by 37 per cent at ₹1,703 crore (₹1,245 crore), provisions were also higher by 34 per cent at ₹1,921 crore (₹1,435 crore), thereby impacting the bottomline.

Net interest income for the March 2020 quarter grew 14 per cent at ₹2,003 crore (₹1,763 crore), while non-interest income grew by 48 per cent at ₹842 crore (₹570 crore).

For the year ended March 31, 2020, the net profit of the bank grew to ₹753 crore when compared to ₹322 crore in FY19. Operating profit was higher by 33 per cent at ₹6,498 crore (₹4,881 crore in FY19).

Net interest income and non-interest income grew by 8 per cent and 76 per cent at ₹7,606 crore (₹7,018 crore) and ₹3,312 crore (₹1,883 crore), respectively.

“Indian Bank has posted yet another year of strong performance. The bank’s business grew 8 per cent to touch the ₹4.66-trillion mark, on the back of credit growth of 10 per cent (₹2.06 trillion) and deposits growth of 7 per cent (₹2.60 trillion). Growth in advances was led by the retail sector, which grew at 16 per cent and well supported by the agriculture and MSME sector, with a growth of 14 per cent and 13 per cent, respectively,” said Padmaja Chunduru, MD and CEO, Indian Bank.

Gross and net NPAs

Gross NPAs (GNPA) fell to 6.87 per cent from 7.11 per cent in March 2019 quarter and 7.20 per cent in the December 2019 quarter. Net NPAs declined to 3.13 per cent from 3.75 per cent in the year-ago quarter and 3.50 per cent in Q3 of FY20. Fresh slippages stood at ₹1,210 crore for the March 2020 quarter and for the full year it was ₹5123 crore. Cash recoveries for Q4 and full year were ₹275 crore and ₹1,183 crore, respectively.

“Amalgamation of Allahabad Bank into Indian Bank has been successfully completed. The integration activities are proceeding as per expected timelines,” said Chunduru.

Indian Bank has sanctioned more than ₹3,000 crore to businesses impacted by Covid across sectors through its various loan schemes as on June 21. Under the Emergency Credit Line Guarantee Scheme (ECLGS), the bank has sanctioned ₹3,725 crore.

Published on June 23, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.

In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.

Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism