Indian Bank reported a 10% year-on-year rise in net profit for the first quarter, aided by strong growth in net interest income and operating profit, even as provisions rose sharply from a year earlier.
The state-run lender's net profit stood at Rs 3,273 crore in Q1, compared with Rs 2,973 crore in the same quarter last year. Net interest income, the difference between interest earned and interest expended, increased 17% year-on-year to Rs 7,435 crore from Rs 6,359 crore.
The operating profit rose 16.5% to Rs 5,557 crore, compared with Rs 4,770 crore a year ago. Other income also grew 8% to Rs 2,633 crore from Rs 2,439 crore.
However, provisions increased 73% year-on-year to Rs 1,196 crore from Rs 691 crore. On a sequential basis, provisions were down 2.5% from Rs 1,225 crore in the previous quarter.
The asset quality improved during the quarter. Gross non-performing assets declined to 1.86% from 1.98% quarter-on-quarter, while net NPA remained flat at 0.15%.
The bank said it made incremental provisions of Rs 731 crore on standard assets. It also set aside Rs 345 crore toward risks arising from the Middle East conflict and Rs 1,000 crore for potential expected credit loss impact.
Despite the sharp rise in yearly provisions, the improvement in gross asset quality and robust growth in core income supported the bank's quarterly earnings performance.
Indian Bank Q1 Results - YoY
- Net profit up 10% at Rs 3,273 crore vs Rs 2,973 crore
- NII up 17% at Rs 7,435 crore vs Rs 6,359 crore
- Operating profit up 16.5% at Rs 5,557 crore vs Rs 4,770 crore
- Other income up 8% at Rs 2,633 crore vs Rs 2,439 crore
- Provisions up 73% at Rs 1,196 crore vs Rs 691 crore
Asset Quality - QoQ
- Gross NPA at 1.86% vs 1.98%
- Net NPA flat at 0.15%
- Provisions down 2.5% at Rs 1,196 crore vs Rs 1,225 crore.
Track Q1 Results Live Updates Here
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