Indian Bank Q1 profit up 21%; asset quality improve, slippages fall to Rs 604 cr

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Public sector lender Indian Bank's profit increased 21.2 percent year-on-year to Rs 372.4 crore in June quarter despite higher provisions. The growth was driven by net interest income, operating income and other income, with improvement in asset quality.

Net interest income, the difference between interest earned and interest expended, grew by 18.1 percent to Rs 1,460.5 crore compared with year-ago quarter.

Asset quality improved during the quarter as gross non-performing assets declined to 7.21 percent from 7.47 percent and net NPAs declined to 4.05 percent from 7.39 percent.

While addressing press conference, Kishor Kharat, Managing Director & Chief Executive Officer said slippages declined to Rs 604 crore in June quarter against Rs 668 crore in March quarter.

It has total of 11 accounts under 5/25, with exposure of Rs 1,350 crore; 14 accounts under SDR, with exposure of Rs 1,316 crore and 4 accounts under S4A, with exposure of Rs 230 crore in June quarter, he said.

He further said the bank identified portfolio of Rs 535 crore, which will be sold to asset reconstruction companies in Q2FY18.

"We are targeting return on assets of 1 percent in the short term and targeting to bring down gross NPA below 5 percent," he said.

Standard restructured book at the end of June quarter stood at Rs 6,294 crore. Indian Bank has exposure worth Rs 2,800 crore to 8 of 12 accounts identified by RBI under Insolvency and Bankruptcy Code.

Provision coverage ratio also improved to 61.7 percent from 58.1 percent on sequential basis.

Provisions for bad loans jumped 71.6 percent year-on-year to Rs 715.5 crore but declined 11.3 sequentially.

Other income (non-interest income) during the quarter shot up 47.6 percent to Rs 652.07 crore and operating profit increased 38.66 percent to Rs 1,252.4 crore compared with corresponding quarter of last fiscal.

At 12:57 hours IST, the stock price was quoting at Rs 336.00, up Rs 5.55, or 1.68 percent on the BSE.