Indian Bank on Wednesday reported a net profit of Rs 984 crore for the fourth quarter of the previous fiscal, compared with Rs 1,709 crore in the year-ago period. The bank said there was a change in deferred tax assets (DTA ) calculations in FY22 from the annual to the quarterly basis. In Q4FY21, the net profit stood at Rs 1,709 crore factoring DTA of Rs 913 crore as against DTA of Rs 161 core in Q4FY22. Total income of the bank stood at Rs 11,405 crore, compared with Rs 10,485 crore, an increase of 8.8%.
Shanti Lal Jain, MD & CEO, told reporters that the asset quality improved in the fourth quarter. During FY22, the lender had recovered around Rs 7,100 crore and it expects a similar recovery in FY23 as well.
The bank’s gross NPA (GNPA) came down to 8.47% as on March 2022, against 9.13% in December 2021, a fall of 66 bps on a Q-o-Q basis. On a yearly basis, GNPA reduced by 138 bps, from 9.85% as of March 2021. Similarly, the net NPA came down to 2.27% in March 2022, compared with 2.72% in December 2021. On a yearly basis, net NPA reduced by 110 bps.
The provision coverage ratio improved to 87.38% as on March 2022 as against 85.49%, a reduction of 189 bps on a Q-o-Q basis. On a yearly basis, PCR improved by 526 bps from 82.12% as of March 2021. “We had a fresh slippage of around Rs 3,300 crore in Q4, out of which one big account of Rs 800 crore belongs to a retail group,” he said. Net interest income stood at Rs 4, 255 crore in Q4, against Rs 3, 334 crore, recording a growth of 28%.