In This Article:
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Total Business Growth: Increased from INR12.44 trillion to INR12.61 trillion, YoY growth of 8.33%.
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Deposit Growth: Increased from INR6.93 trillion to INR7.02 trillion, YoY growth of 7.34%.
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CASA Growth: Maintained at 40% share, grew by 3.86%.
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Advances Growth: Increased from INR5.51 trillion to INR5.59 trillion, YoY growth of 9.61%.
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Net Profit: Increased from INR2,119 crores to INR2,852 crores, YoY growth of 34.57%.
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Operating Profit: Increased from INR4,097 crores to INR4,749 crores, YoY growth of 15.91%.
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Net Interest Income (NII): Increased from INR5,815 crores to INR6,415 crores, YoY growth of 10.32%.
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Net Interest Margin (NIM): Increased from 3.41% to 3.45% YoY.
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Return on Assets (ROA): Increased from 1.11% to 1.39% YoY.
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Return on Equity (ROE): Maintained at 21%, YoY growth of 108%.
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Cost-to-Income Ratio: Reduced from 45.12% to 44.56%.
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Provision Coverage Ratio (PCR): Maintained at 98.09%, up 209 basis points YoY.
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Credit Cost: Reduced to 0.47% from 0.65% a quarter ago.
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Earnings Per Share (EPS): Increased from INR67.12 to INR84.70, YoY growth of 26%.
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Book Value: Increased from INR347.73 to INR412.42 YoY.
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Gross NPA: Reduced to 3.26%, down 121 basis points YoY.
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Net NPA: Reduced to 0.21% from 0.53% a year ago.
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Slippage Ratio: Reduced to 0.78% from 1.06% in September.
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Digital Business Growth: Increased by 125% from INR52,884 crores to INR1,18,981 crores.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Indian Bank (BOM:532814) reported a YoY net profit growth of 34.57%, reaching INR2,852 crores.
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The bank's operating profit increased by 15.91% YoY, amounting to INR4,749 crores.
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Net Interest Income (NII) saw a YoY growth of 10.32%, totaling INR6,415 crores.
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The bank's Return on Assets (ROA) improved to 1.39%, surpassing the guidance of 1.20%.
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Digital business growth was significant, with a 125% increase in digital channel transactions.
Negative Points
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The bank faces challenges in achieving its credit growth target of 11% to 13%, requiring substantial growth in the fourth quarter.
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Deposit growth has been muted, with only a 1% increase in the first nine months of FY25.
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The cost of deposits increased by 5 basis points QoQ, impacting overall margins.
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The SMA book showed some stress, with three large accounts initially slipping into SMA 2.
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The bank's co-lending business has been paused due to reconciliation issues, impacting potential growth avenues.
Q & A Highlights
Q: Given the need for significant growth in the fourth quarter to meet credit growth targets, how does Indian Bank plan to achieve this? A: Binod Kumar, Managing Director & CEO, stated that the bank has a strong pipeline of around INR40,000 crores in various stages of disbursement. He expressed confidence in achieving the 11% to 13% credit growth target, citing higher demand in the fourth quarter.