Indian Bank back in black with ₹1,709 cr.net in Q4

Provisions and contingencies contracted to ₹839 crore (₹4,042 crore). Total income declined 7% to ₹10,648 crore.

Public sector lender Indian Bank reported a standalone net profit of ₹1,709 crore for the fourth quarter of FY21 against a net loss of ₹1,641 crore in the year-earlier period on robust growth in profit, controlled asset quality and strong capital adequacy.

Provisions and contingencies contracted to ₹839 crore (₹4,042 crore). Total income declined 7% to ₹10,648 crore.

“It was a significant and challenging year for Indian Bank due to the pandemic and being the first full year of amalgamation with Allahabad Bank. Indian Bank posted strong and steady performance on all key parameters,” said Padmaja Chunduru, MD & CEO.

Net interest income increased 1% to ₹3,334 crore. Net interest margin (domestic) decreased by 33 basis points to 2.85%. Non-interest income was marginally up to ₹1,744 crore due to higher profit on sale of investment, foreign exchange income and PSLC commission.

Gross non-performing assets dropped to 9.85% (11.39%) and net NPAs to 3.37% (4.19%). Provision coverage ratio rose to 82.2% (73.05%).

Total business grew 8% y-o-y to ₹9,28,388 crore. Total deposits grew 10% and advances by 6% respectively.

“Going forward, the emphasis would be on transformation in digital, operations and HR front. This year our focus will be on leveraging the larger balance-sheet size, higher CRAR, wider geographical presence, larger talent pool and enhanced technology,” she said.

The bank declared a dividend of ₹2 per share for FY21.

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