Indian Bank Q1 net profit jumps 74.55% to Rs 365 cr on arrest of fresh slippages, increase in loan recovery

  • The city-based bank recorded net profits at Rs 209.31 crore during the corresponding quarter the previous year

  • For the year ending 31 March, 2019 the net profits were at Rs 321.95 crore

  • Declaring the financial performance, Indian Bank managing director and CEO Padmaja Chunduru said it is one quarter posting strong results

Chennai: Public sector Indian Bank on Monday posted a 74.55 percent jump in its net profits for the April-June quarter, at Rs 365.37 crore, according to a top official.

The city-based bank recorded net profits at Rs 209.31 crore during the corresponding quarter the previous year.

For the year ending 31 March, 2019 the net profits were at Rs 321.95 crore.

Declaring the financial performance, Indian Bank managing director and CEO Padmaja Chunduru said it is one quarter posting strong results.

 Indian Bank Q1 net profit jumps 74.55% to Rs 365 cr on arrest of fresh slippages, increase in loan recovery

Representational image. Reuters

"The bank has posted a healthy growth in all segments," she told reporters.

On the total income for the April-June quarter, she said it grew to Rs 5,832.11 crore from Rs 5,131.96 crore registered the same period last year.

For the year ending March 31, 2019 total income of the bank was at Rs 21,067.70 crore.

On the 74.55 percent jump in the net profits, Chunduru said they have been the highest strong point of this quarter.

"There is a 75 percent increase (in net profits). This is because of arrest in fresh slippages, an increase in recovery. I think, we are back on track. We have been working on arresting fresh slippages," she said.

According to her, the slippages were Rs 1,035 crore for the quarter under review period.

She said the bank has set a target of bringing down the slippages to around Rs 800-Rs 900 crore in the coming quarters.

"There is growth in RAM (retail, agriculture and micro, small and medium enterprises segments) with 25 percent in retail, 25 percent in agriculture and 10 percent in MSMEs. The overall capital adequacy ratio is at 13.62 percent. This is what gives us more comfort and confidence. We are building assets in a very prudent way", she said.

Noting that the bank witnessed over 300 percent rise in transactions made through mobile banking, she said the bank planned to ramp up transactions made through the digital platform.

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Updated Date: Aug 05, 2019 18:24:49 IST