Indian Bank Q4 profit rises 47% to Rs 1,447 crore

New Delhi: State-owned Indian Bank on Monday reported a 47 per cent rise in net profit to Rs 1,447 crore for the March quarter, helped by a decline in bad loans and a rise in interest income.

The bank had earned a net profit of Rs 984 crore in the year-ago period.

During the quarter, the bank's total income increased to Rs 14,238 crore against Rs 11,405 crore a year ago, Indian Bank said in a regulatory filing. Interest income grew to Rs 12,244 crore during the period under review from Rs 9,832 crore in the corresponding quarter of the preceding fiscal. The bank's board has recommended a dividend of Rs 8.60 per share or 86 per cent of Rs 10 face value for the year ended March 31, 2023.

Gross non-performing assets (NPAs) were reduced to 5.95 per cent of gross advances as of March 31, 2023, from 8.47 per cent by the end of March 2022. Net NPAs also came down to 0.90 per cent of the advances from 2.27 per cent a year earlier. The fall in the bad loans ratio helped cut the provisions towards NPAs for Q4FY23 to Rs 1,040 crore compared to Rs 2,046 crore in the year-ago period. During the quarter and year ended March 31, 2023, the bank has made additional provisions of Rs 116.26 crore and Rs 363.61 crore, respectively, in certain stressed standard accounts in terms of RBI guidelines on 'Prudential Framework for resolution of stressed assets', it said.