Indian Bank Q1 Results: Net profit soars 41% to Rs 2,403 crore, NII up 8%

State-owned Indian Bank reported 41% year-on-year jump in net profit for the June quarter at Rs 2403 crore against Rs 1709 crorein the year ago period, helped by a fall in total provisions.

Total provisions were 28% lower at Rs 1258 crore in sync with improvement in asset quality.

Pre-provision operating profit was up 9% at Rs 4502 crore, while net interest income rose 8% at 6178 crore. Fee based income grew 17% at Rs 788 crore .


The bank's net interest margin for the quarter stood at 3.44%, down compared with 3.56% in the year-ago period.

Its asset quality improved further with gross non-performing assets falling 170 basis point to 3.77% at the end of June. Net NPA reduced to 0.39% against 0.70%. Provision coverage ratio improved by 156 bps year-on-year to 96.66%.

The bank managed to contain the slippage ratio to 1.50% in comparison to 1.57% a year ago.

Its gross advances grew 12% year-on-year to Rs 5.39 lakh crore while total deposits increased by 10% to Rs 6.81 lakh crore with current and savings account ratio being at 39% at the end of June.