Indian Bank announces financial results for Q4FY22Net Profit up by 31% at ₹3945 Cr in FY22

Bank’s Global Business surpassed Rs.10,00,000 Cr.

Key Highlights (for year ended Mar’22)

• Net Profit up by 31% at ₹3945 Cr in FY22 from ₹3005 Cr in FY21

• Operating profit for FY22 up by 16% at ` 12717 Cr in FY22 from ₹10967 Cr in FY21

• Net Interest Income increased by 7% YoY to ₹16728 Cr in FY22 from ₹15666 Cr in FY21

• Fee based income grew by 8% to ₹2555 Cr

• Non-Interest Income increased by 22% YoY to ₹6915 Cr in FY22 from ₹5650 Cr in FY21

• Advances increased by 6% YoY to ₹415625 Cr in FY22 from ₹390317 Cr in FY21

• RAM (Retail, Agriculture & MSME) grown by 11% to ₹242700 Cr in Mar’22 from ₹218942 Cr in Mar’21

• Retail, Agri, MSME advances grew by 15%, 12% and 6% respectively. RAM contribution to domestic advances is 61%

• Deposit increased by 10% YoY and reached to ₹593618 Cr in Mar’22.

• CASA grew by 9%, CA YoY growth 14%, SB YoY growth 8% CASA ratio stood at 41.77%

• GNPA decreased by 138 bps YoY to 8.47%, NNPA reduced by 110 bps to 2.27%.

• Provision Coverage Ratio (PCR) stood at 87.38% improved by 526 bps

• Capital Adequacy Ratio at 16.53%. CET improved by 126 bps YoY to 12.53%. Tier I Capital improved by 123 bps YoY to 13.17%

The Board of Directors has recommended a dividend of ₹6.50 per equity share (65%) for the year ended Mar’22 subject to requisite approvals.

Key Highlights (quarter ended Mar’22 over Mar’21)

• Net Profit for Q4 FY22 stood at ₹984 Cr as against ₹1709 Cr in Q4FY21. In Q4 FY21, Net profit includes DTA of ₹913 Cr (for entire FY21). In FY22, DTA adjustments is spread over four quarters.

• Operating profit increased by 15% at ₹2738 Cr

• Net Interest Income increased by 28% to ₹4255 Cr

Key Highlights (quarter ended Mar’22 over Dec’21)

• Net Profit up by 43% at ₹984 Cr

• Operating profit decreased by 17% at ₹2738 Cr mainly due to provisioning for entire Family Pension liability

Key Highlights of Business Performance as on 31st March 2022

Business:

· Total Business recorded a YoY growth of 9% reaching the level of ₹1009242 Cr in Mar’22 as against ₹928388 Cr in Mar’21. On a sequential quarter basis, it increased by 5%.

· Advances grew by 6% to ₹415625 Cr in Mar’22 over ₹390317 Cr a year ago, driven primarily by the growth in RAM sector (11%); of which Retail, Agriculture and MSME grew by 15%, 12% and 6% respectively. Advances stood at ₹400432 Cr in Dec’21.

· Total Deposits grew by 10% YoY to ₹593618 Cr in Mar’22 as compared to ₹538071 Cr in the previous year and ₹562575 Cr in Dec’21.

· CASA deposits recorded a YoY growth of 9% in Mar’22. The share of CASA to total deposits was 41.77% in Mar’22 as against 42.30% a year ago. Growth in CASA was primarily driven by 14% YoY growth in Current Account deposits and 8% YoY growth in Savings account deposits.

· Priority Sector portfolio increased to ₹148806 Cr in Mar’22 from ₹130274 Cr in Mar’21. Priority sector advances as a percentage of ANBC stood at 45.47% as against the regulatory requirement of 40%.

Asset Quality:

· GNPA came down to 8.47% as on Mar’22 as against 9.13% in Dec’21 i.e., reduction of 66 bps on Q-o-Q basis. On yearly basis, GNPA reduced by 138 bps from 9.85% as of Mar’21.

· NNPA came down to 2.27% in Mar’22 as against 2.72% in Dec’21 i.e., reduction of 45 bps on Q-o-Q basis. On yearly basis, NNPA reduced by 110 bps from 3.37% as of Mar’21.

· Provision Coverage Ratio (PCR) improved to 87.38% as on Mar’22 as against 85.49% i.e., reduction of 189 bps on Q-o-Q basis. On yearly basis, PCR improved by 526 bps from 82.12% as of Mar’21.

Financial Ratios:

· Return on Average Assets (RoA) increased by 13 bps to 0.63% in FY22 against 0.50% in FY21.

· Return on Equity (RoE) improved by 150 bps to 12.13% in FY22 against 10.63% in FY21.

· Cost-to-Income Ratio improved by 2.34% to 46.21% in FY22 against 48.55% in FY21.

· Net Interest Margin (NIM Domestic) increased by 6 bps to 2.91% in FY22 against 2.85% in FY21.

Capital Adequacy:

· As on Mar’22, Bank’s total Capital Adequacy Ratio (CRAR) stood at 16.53% against 15.71% as of Mar’21 and 15.47% as of Dec’21.

· Tier-I CRAR was at 13.17% as of Mar’22 against 11.94% as of Mar’21 and 12.03% as of Dec’21.

Network:

· The Bank has 5732 number of branches, out of which 1938 branches are Rural, 1498 branches are Semi-Urban, 1159 branches are Urban and 1137 branches are Metro.

· The Bank has 4925 ATMs & BNAs and 9657 number of BCs.

Our Initiatives/Focus

With an endeavour to promote digital banking and provide 24x7 digital access to the customers for their personal credit requirements, we have launched Pre-Approved Personal Loan (PAPL) scheme to provide instant loan to customers in simple steps. Bank is also working on a mission mode for mobile banking/UPI registration through our IndOasis App to promote digital banking, as the present-day customer satisfaction is based on the promptness and quality of services.

Indian economy has regained the momentum and is coming back on the growth track. After a phase of deleveraging, we see a revival in capex, increased working capital demand due to a higher output & higher exports. Our prime focus will be to support the Corporates and the Retail customers to grow with ease which will in turn support the Bank’s consistent growth.