Public sector lender Indian Bank on Friday reported a net profit of Rs 1,709 crore for the fourth quarter of FY21. The Chennai-based bank incurred a Rs 1,641-crore net loss in the very same quarter last fiscal. Total revenue of the bank was at Rs 10, 648 crore as compared to Rs 11,485 crore, registering a drop of 7%.
The amalgamation of Allahabad Bank into Indian Bank came into impact on April 1, 2020. Accordingly, the combined financials as on March 31, 2020, had been arrived at by aggregation of audited numbers of the two banks, Indian Bank stated.
Padmaja Chunduru, MD & CEO, Indian Bank, stated all the parameters such as company, earnings, asset good quality and capital have made substantial improvement in the fourth quarter.
The net interest revenue of the bank rose by 1% in Q4FY21 to Rs 3,334 crore from Rs 3,310 crore in Q4FY20 and on a sequential basis, it decreased by 23%. The net interest margin (NIM) decreased by 33 basis points (bps) and was at 2.34% as against 2.67%. Non-interest revenue was at Rs 1,744 crore as against Rs 1,728 crore, on account of larger profit on sale of investment, forex revenue and PSLC commission.
The CASA deposits recorded a year-on-year (y-o-y) development of 14% and share of CASA to total deposits was 42% in March 2021 as against 41% a year ago. Growth in CASA was mainly, driven by a y-o-y boost of 32% in existing account deposits and 12% in savings account deposits.
The asset good quality of the bank enhanced in Q4, the gross NPA was at 9.85% of gross advances as on March 2021, brought down by 154bps y-o-y from 11.39% as on March 2020. The net NPA came down to 3.37% from 4.19% with a reduction of 82 bps y-o-y. Its total capital adequacy ratio (CRAR) was at 15.71% with development of 244 bps y-o-y. On a sequential quarter basis, it elevated by 165 bps from 14.06% in Q3FY21.
Provisions and contingencies had been at Rs 839 crore as against Rs 4,042 crore and operating costs decreased by 4% to Rs 2,530 crore as against Rs 2,637 crore.
Total company recorded development of 8% y-o-y, reaching the level of Rs 9,28,388 crore in March 2021 as against Rs 8,57,499 crore in March 2020. Total deposits grew by 10% y-o-y to Rs 5,38, 071 crore as compared to Rs 4,88, 835 crore. Priority sector portfolio elevated to Rs 1,30,274 crore from Rs 1, 27, 542 crore, the bank stated.