IndianBank Indian Bank Q1 net profit moves up 8 pc to Rs 1147 cr
Bengaluru/UNI: The Indian Bank on Friday reported a 8 per cent rises in net profit at Rs 1147 crore in first quarter of the current fiscal year.
According to a statement issued here on Friday, the net interest income grew by 17 per cent to Rs 3974 crore as against Rs 3316 crore in Q1'FY 20. Other income increased by 19 pc to Rs.1327 Cr as against Rs 1119 Cr in Q1 FY20. Operating Profit grew by 23 pc to Rs 2753 Cr for the Q1'FY21 as against Rs 2234 Cr for Q1'FY20.
Net Profit stood at Rs. 369 Cr as against Rs.492 Cr for the combined entity in Q1 FY20.
Net interest margin (NIM) (Domestic) was 2.83 pc, against 2.87 pc in Q1'FY20. Cost-to-income ratio improved to 47.06 pc as against 49.63 pc for Q1'FY20.
Commenting on the results, Padmaja Chunduru MD & CEO, Indian Bank said, “This is a very satisfying performance in the first quarter post amalgamation.
The key parameters of income, cost efficiency and profitability have improved both Y-o-Y and Q –o-Q. Asset quality has improved.
The Bank has made upfront provisions in 2 accounts and also contingency provisions for COVID-19. The accounts under Moratorium constitutes above 23% and there is very good progress being made on the collection front, month on month.
The amalgamation is going on track and we expect to complete it in the current Financial Year.”
Indian Bank has recently reduced interest rates on it Agricultural Jewel Loans at 7 pc fixed ( Rs 583/- per lakh per month) with a view to provide easy and cheap credit to needy farmers in the present pandemic situation. This interest rate is one of the least in the industry; moreover, the lending rate per gram is also high.
The Bank provides 80- 85 pc of the jewel value as loan which is repayable in 6 months. Gold loans are disbursed very quickly with simple processing system and procedures, through more than 3000 branches across the country. Besides Agri Gold Loan, there are also varied Gold Loan Products for MSME and other consumption purposes also.
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