The state-owned Indian Bank increased its consolidated net profit by 48 per cent to Rs 1,520 crore in Q4 FY23, from Rs 1,024 crore in the same period in FY22, due to higher income and improved asset quality.
The total income of the Chennai-based lender increased by 25 per cent during the quarter under review, to Rs 14,416 crore, up from Rs 11,556 crore in Q4 FY22. The company’s gross non-performing assets (NPA) were 5.95 per cent of gross loans as of March 31, 2023, compared to 8.47 per cent during the same period in 2022. Similarly, as of March 31, 2023, net NPA was 0.90 per cent of gross advances, compared to 2.27 per cent during the same period in 2021-22.
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Net interest income (NII), which is the difference between interest received and interest expended, was Rs 5,519 crore in Q4 FY23, up 29 per cent from Rs 4,271 crore in the same time in FY22.
For FY23, Indian Bank’s board of directors recommended a dividend of Rs 8.60 per equity share (86 per cent of the bank’s paid-up equity capital). The lender recorded an EPS of Rs 12.20 for the period, up from Rs 8.22 for the period ended March 31, 2022
The bank’s return on average assets increased to 0.89 per cent in Q4 FY23 from 0.62 per cent in Q4 FY22. During the quarter, its overall capital adequacy ratio (CAR) maintained at 16.84 per cent, the same as in Q4FY22.
During the fiscal year 2022-23, the bank’s net profit climbed by 35 per cent to Rs 5,572 crore, up from Rs 4,142 crore in 2021-22. Its total revenue increased by 14 per cent year on year to Rs 52,790 crore, up from Rs 46,268 crore in 2021-22.
The bank’s board of directors has also approved a strategy to raise up to Rs 4,000 crore in equity capital in 2023-24 through different methods such as a follow-on public offer (FPO), rights issue, qualified institutional placement (QIP), or merger.
The board of directors approved funding about Rs 3,000 crore through the issuing of Basel III Compliant AT 1 Perpetual Bond or Tier-2 Bond in one or more tranches during the current or following fiscal years, depending on the need.
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