The state-run Indian Bank has reported a 4 per cent increase in net profit to Rs.1,311 crore for the first quarter of 2022-23 compared to Rs.1,259 crore in the same period last year.

The bank’s total revenue for the April-June quarter 2022-23 also increased by 3 per cent to Rs.11,898 crore from Rs.11,553 crore in the same period last year. The bank’s operating profit for June 2022 increased by 4 per cent to Rs.3,575 crore from Rs.3,435 crore in June 2021.

Gross non-performing assets declined 156 basis points (bps) to 8.13 percent of gross advances in June 2022, from 9.69 percent in the same period last year. Non-performing net assets also declined 135 basis points to 2.12 percent from 3.47 percent in June 2021. The coverage ratio for non-performing assets improved by 608 basis points from 82 percent in the first quarter of 2022-23 to 88.08 percent in the first quarter of 2021-22.

During the period, net interest income increased by 13 per cent to Rs 4,534 crore from Rs 3,995 crore in the same period last financial year. Noninterest income (excluding Treasury income) increased by 37.67 per cent to Rs.1,736 crore in June 2022 from Rs.1,261 crore in the same quarter last financial year.

Deposits increased 8 per cent year-on-year to reach Rs 5,84,251 crore in the April-June 2022 quarter. CASA also grew 8 per cent. Advances rose 9 per cent to Rs.4,25,203 crore in the quarter from Rs.3,89,626 crore in June 2021.

“The bank’s core business has contributed to this growth. That’s because our personal loans are up 14 percent, home loans are up 11 percent, auto loans are up 22 percent, personal loans are up 32 percent, and gold loans are up 42 percent. At the same time, CASA grew by 8 percent. So the result is an increase in NII and other revenues,” he said