Exclusive: S.L. Jain, MD & CEO, Indian Bank On Q1 Earnings, NPAs, CASA & Banking Sector Outlook

State-owned Indian Bank has reported a remarkable 41% increase in its net profit, reaching Rs 2,403 crore for the June 2024 quarter, driven by a decline in bad loans. This Chennai-based lender had earned a net profit of Rs 1,709 crore in the same period last year. Operating profit improved by 9% year-on-year (YoY) to Rs 4,502 crore, while net interest income increased by 8% YoY to Rs 6,178 crore. Fee-based income grew by 17% YoY to Rs 788 crore. Return on Assets (RoA) rose by 25 basis points (bps) to 1.20%, and Return on Equity (RoE) increased by 188 bps to 19.76%. Yield on Advances (YoA) went up by 16 bps to 8.69%, and Yield on Investments (YoI) increased by 43 bps to 7.15%. Gross advances saw a 12% YoY rise to Rs 5,39,123 crore, while total deposits increased by 10% YoY to Rs 6,81,183 crore, with CASA and savings deposits growing by 6% and current deposits by 5%. The domestic CASA ratio stood at 41%, and the CD ratio at 79%. The bank’s Gross Non-Performing Assets (GNPA) decreased by 170 bps YoY to 3.77%, and Net Non-Performing Assets (NNPA) reduced by 31 bps to 0.39%. The Provision Coverage Ratio (PCR), including Technical Write-offs, improved by 156 bps YoY to 96.66%. The slippage ratio was contained to 1.50%. The Capital Adequacy Ratio improved by 69 bps to 16.47%, with Common Equity Tier 1 (CET-I) at 13.42% and Tier I Capital at 13.93%. Join Business Today TV's Siddharth Zarabi as he speaks with S.L. Jain, MD & CEO of Indian Bank to discuss Q1 earnings, the banking sector outlook, NPAs, and the bank's plans for FY25. Don't miss this exclusive interview!