Indian Bank reports huge net profit in Q4

 

Indian Bank on Friday reported a net profit of Rs 1,708.85 crore in the March-ended quarter. The lender had posted a net loss of Rs 217.74 crore in the same quarter of the preceding financial year 2019-20.

Sequentially, the bank had posted a net profit of Rs 514.29 crore in the December quarter of the financial year 2020-21.

The bank said figures of March 31, 2020, are related to standalone Indian Bank financing for the pre-amalgamation period, hence not comparable with the post amalgamation financials of December 2020 and March 2021.

The erstwhile Allahabad Bank was amalgamated into Indian bank with effect from April 1, 2020.

Total income during the January-March quarter of 2020-21 increased to Rs 10,647.87 crore. It was Rs 6,334.37 crore in the same period of 2019-20, Indian Bank said in a regulatory filing.

For the full year of the financial year 2020-21, the net profit of the bank was recorded at Rs 3,004.68 crore. In the previous financial year, the bank had a total income of Rs 753.36 crore. The total income for the year was Rs 45,185.04 crore. Income in the preceding fiscal was at Rs 24,717.43 crore.

On the asset quality front, the bank's gross non-performing assets (NPAs) or the bad loans stood at 9.85 per cent of the gross advances by end of March 31, 2021. It was 6.87 per cent by March 2020.

In value terms, the gross NPAs of the bank stood at Rs 38,455.35 crore as against Rs 14,150.84 crore.

Net NPAs too rose at 3.37 per cent (Rs 12,271.13 crore) from 3.13 per cent (Rs 6,184.24 crore).

The bank made provisions for bad loans and contingencies worth Rs 1,752.48 crore for the March 2021 quarter. In the year-ago period, it was Rs 1,891.86 crore.

The board of directors of the bank has recommended a dividend of Rs 2 per equity share for the financial year 2020-21, the bank said.

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Indian Bank Q3 Profit more than doubles

 

State-owned Indian Bank on Friday reported more than doubling of its profit at Rs 514.28 crore for the third quarter ended December 2020. The bank's profit in the year-ago period stood at Rs 247.16 crore.

Total income during the quarter under review was Rs 11,421.34 crore, up from Rs 6,505.62 crore in the same period a year ago, Indian Bank said in a regulatory filing.

However, the bank's gross non-performing assets (NPAs) as a percentage of assets rose to 9.04 per cent during October-December 2020-21 from 7.20 per cent in the year-ago period.

The percentage of net NPA was lower at 2.35 per cent as against 3.50 per cent.

The bank further said it had made provisioning of Rs 2,314.35 crore towards bad loans and contingencies as against Rs 1,529.26 crore in the same quarter a year ago.

During the quarter ended December 31, 2020, the bank raised additional tier-1 capital in three tranches aggregating to Rs 2,000 crore through private placement of Basel III compliant AT 1 Perpetual Bonds.

Non-performing loan provision coverage ratio is 86.51 per cent as on December 2020, it said.

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Indian Bank Q2 net profit rises 15%

State-owned Indian Bank on Thursday reported a 15 per cent rise in net profit at Rs 412.28 crore for the second quarter ended September, despite increase in provisions for bad loans. The bank's net profit in July-September quarter of 2019-20 stood at Rs 358.56 crore.

The results are not strictly comparable with that of previous year's as Kolkata-based Allahabad Bank merged with Indian Bank on April 1, 2020.

Indian Bank's total income rose to Rs 11,669.11 crore during September quarter this year from Rs 6,045.32 crore in the same period of the previous fiscal, it said in a regulatory filing.

On asset quality front, gross non-performing assets (NPA) rose to 9.89 per cent of gross advances at the end of September 2020 from 7.20 per cent a year ago.

However, net NPA declined to 2.96 per cent of the advances at the end of second quarter of this fiscal from 3.54 per cent a year ago.

The bank's provisioning for bad loans and contingencies rose to Rs 2,284.11 crore during July-September quarter from Rs 909.36 crore in the corresponding quarter a year ago.

Provisioning for bad loans alone doubled to Rs 1,880.19 crore at the end of September 2020 from Rs 720.90 crore a year ago.

Provision coverage ratio rose to 84.39 per cent as on September 30, 2020.

The Chennai-based lender said the extent to which the COVID-19 pandemic will impact the bank's results will depend on future developments, which are highly uncertain.

Indian Bank's capital and liquidity position is strong and would continue to be the focus area, it said.

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Indian Bank Q1 results: Profit rises marginally, asset quality declines

State-owned Indian Bank on Friday reported a marginal 1 per cent rise in its standalone net profit at Rs 369.26 crore in the first quarter ended June 2020. Its net profit stood at Rs 365.37 crore in the same period a year ago. Sequentially, the lender had posted a net loss of Rs 217.73 crore in preceding quarter ended March 2020.

Total income of the bank almost doubled to Rs 11,446.71 crore during the April-June period of 2020-21 from Rs 5,832.12 crore in the year-ago same period, Indian Bank said in a regulatory filing.

With regard to June 2019 quarter and sequential January-March 2020 period numbers, the bank said the figures are related to standalone Indian Bank financials for pre-amalgamation period, hence not comparable with post amalgamation financials for the quarter ended June 30, 2020.

Allahabad Bank was merged into Indian Bank with effect from April 1, 2020.

Asset quality of the bank witnessed worsening with the gross non-performing assets (NPAs) rising to 10.90 per cent of the gross advances as on June 30, 2020 as against 7.33 per cent by the year-ago same period.

In value terms, the gross NPAs stood at Rs 39,965.02 crore as against Rs 13,511.21 crore.

Net NPAs or bad loans on the other hand came down to 3.76 per cent from 3.84 per cent. In value terms, they were higher at Rs 12,754.74 crore as on June 30, 2020 as against Rs 6,824.24 crore by June 2019.

Bank's provisioning for bad loans and contingencies for the June quarter of FY'21 rose to Rs 2,139.12 crore from Rs 794.82 crore parked aside for the same quarter of FY'20.

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Indian Bank Q4 results: Posts net loss of Rs 218 crore

Public sector lender Indian Bank has slipped into the red in the fourth quarter with Rs 218 crore net loss on account of higher provisions. It had made profits in the previous three quarters while suffered Rs 190 crore loss in the year ago period.

Its operating profit rose 37 per cent at Rs 1,703 crore compared with Rs 1,245 crore in the year ago period. Total income rose 14 per cent at Rs 6,334 crore over Rs 5,538 crore with net interest income growing at the same rate at Rs 2,003 crore.

The year-on-year loss widened due to 34 per cent higher provisions and contingencies which was seen at Rs 1,921 crore, the bank said.

The bank has shown improvement in asset quality with gross non-performing assets ratio falling to 6.9 per cent at the end of March from 7.11 per cent, while the net ratio was at 3.1 per cent from 3.75 per cent.

Its total business grew 8 per cent to Rs.4.66 lakh crore, contributed by 19 per cent credit growth to Rs.2.06 lakh crore and 7 per cent deposits growth to Rs 2.60 lakh crore. Growth in advances was led by the retail sector which grew 16 per cent and well supported by agriculture and the MSME sector with a growth of

14 per cent and 13 per cent respectively.

Allahabad Bank was merged with Indian Bank effective from April.

"The amalgamated entity would leverage on the combined strengths of both the banks to post impressive growth in FY21," Indian Bank chief executive Padmaja Chunduru said.

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Merger News: Mega merger of 10 PSU banks takes effect; all you need to know

The merger of ten government-run banks into four will come into force from April 1. The branches of the merging banks will operate as branches of the banks in which they have been merged. Customers of merging banks will also now be treated as customers of the banks in which these banks have been merged. The banks' merger was announced last year in August and the union cabinet gave the final approval on March 4. In the past, various other bank mergers have taken place. For instance, in 2017, the country's largest public lender - the State Bank of India took over five of its associates and Bharatiya Mahila Bank. Last year, Vijaya Bank and Dena Bank were merged with Bank of Baroda. Kotak Mahindra Bankcand ING Vysya Bank merger and amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank took place in 2014 and 2008, respectively.

Here are a few aspects of the PSU bank merger:

1. As per the latest merger- Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will be merged with Punjab National Bank (PNB). The merged entity will become the second-largest state-run bank. The new entity will have a business of Rs 17.95 lakh crore and 11,437 branches.

2. The amalgamation of Syndicate Bank into Canara Bank will create the fourth-largest public sector bank with Rs 15.20 lakh crore business and a network of 10,324 branches.

3. Allahabad Bank branches will operate as those of the Indian Bank. The merger of Allahabad Bank with the Indian Bank will create the seventh-largest public sector bank with Rs 8.08 lakh crore business.

4. Branches of Andhra Bank and Corporation Bank will function as the branches of Union Bank of India. Andhra Bank and Corporation Bank's merger with Union Bank of India will create India's fifth-largest public sector bank with Rs 14.59 lakh crore business and 9,609 branches.

5. The government had front-loaded Rs 68,855 crore to take care of the bank-merger plan.

6. Punjab National Bank was given Rs 16,091 crore, Union Bank of India Rs 11,768 crore, Canara Bank Rs 6,571 crore and Indian Bank Rs 2,534 crore. Allahabad Bank was provided Rs 2,153 crore, United Bank of India Rs 1,666 crore, Andhra Bank Rs 200 crore, Indian Overseas Bank Rs 4,360 crore and UCO Bank Rs 2,142 crore.

7. According to the government, the merger of the 10 banks will lead to the creation of stronger establishments. This merger would follow in the example of the amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank last year.

8. With this mega-bank mergers, the number of PSBs will get consolidated from 27 banks in 2017 to 12 banks in 2020.

9. The new 12 public sector banks will be -- six merged banks and six independent banks. State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank will be the six merged banks. And Bank of India(BoI), Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sind Bank, which have a strong regional focus, will remain independent entities.

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PSU banks announce share-swap ratios ahead of April 1 merger

Following the footsteps of State Bank of India and Bank of Baroda, the boards of 10 public-sector banks on Thursday approved mergers and issued share-swap ratios to create four large banks in the economy.

The four anchor banks will be Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank. The merger will be effective from April 1.

Last year, Bank of Baroda took over Vijaya Bank and Dena Bank. Before that, State Bank of India (SBI) had merged all its five associate banks with itself to enter the global top 50 banks’ list in terms of size. Punjab National Bank (PNB) will merge with United Bank of India and Oriental Bank of Commerce to create the largest bank in the country after State Bank of India.

According to notifications to the stock exchanges, Delhi-based PNB will issue 1,150 shares for 1,000 shares of Oriental Bank of Commerce, and 121 shares for 1,000 shares of United Bank of India.

Mumbai-based Union Bank of India will take Andhra Bank and Corporation Bank. Union Bank of India will issue 325 shares for 1,000 shares of Andhra Bank, and 330 shares for 1,000 shares of Corporation Bank.

Bengaluru-based Canara Bank will issue 158 shares for 1,000 shares of Syndicate Bank.

Allahabad Bank said for every 1,000 shares (face value Rs 10) of Allahabad Bank, there would be 115 shares (face value Rs 10) of Indian Bank.

The Union Cabinet had approved the consolidation to build the mega banks “to create more efficient and bigger public sector banks in the challenging environment to meet the credit needs of a growing economy and to achieve operational efficiency by scale of business”. The amalgamation will lead to a wide geographical reach, technology adaption, and, more importantly, better utilisation of scarce capital.

A grievance redress system has been put in place, and a committee has been formed headed by a retired judge. If shareholders have any issue with the swap ratio — for example, if they feel they didn’t get enough time or if they need information — they can raise it. This is the board-approved swap ratio.

“After the committee receives all the grievances, it will have seven days to recommend changes, if needed, which will be the final swap ratio,” said a top official of a PSB to be merged.

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Indian Bank Q3 profit jumps 62%

State-owned Indian Bank on Friday reported 62.3 percent jump in net profit at Rs 247.16 crore for December quarter 2019-20, mainly due to reduction in bad loans.

The bank's profit in the year-ago period stood at Rs 152.26 crore. Total income during the quarter under review was  Rs 6,505.62 crore, up from Rs 5,269.10 crore in the same period a year ago, Indian Bank said.

The bank's net non-performing assets (NPAs) as a percentage of assets reduced to 3.5 percent during October-December 2019-20 from 4.42 percent in the year-ago period.

Similarly, the percentage of gross NPA was lower at 7.2 percent as against 7.46 percent.

In absolute terms, net NPAs stood at Rs 6,487.58 crore. This compares with Rs 7,571.07 crore in the third quarter of

the last financial year.

The bank further said it had made provisioning of Rs 1,529.26 crore towards bad loans and contingencies. During

October-December 2018-19, the provisioning stood at Rs 923.67 crore.

The bank has provided Rs 1,004 crore for divergence in provisioning and also re-classified three standard accounts

amounting to Rs 184 crore as fresh NPA, Indian Bank said.

Briefing reporters, Indian Bank Managing Director and CEO Padmaja Chunduru said the third-quarter results were very

much in line with expectations.

"If you recall last quarter also we were talking of building the balance sheet strength and its resilience. I think that is very visible this quarter because there is secular growth across all verticals," she said.

To a query, she said the fresh NPA was from an account of DHFL and added the bank has more control over such accounts.

She said the net interest income and other income were under control while gross NPA was maintained at the same level of last quarter.

Chunduru said the bank during the quarter surpassed the Rs 4 lakh crore business mark during the quarter ending

31 December 2019.

Following the Centre's move to merge Indian Bank with Allahabad Bank, she said the business mark would double in

size by June 2020.

"The growth in business has been faster in the last two years and we expect it would be very fast going forward also,"

she said.

Asked if a name has been decided following the merger with Allahabad Bank, Chunduru said "we have discussed with

Allahabad Bank, we are discussing with our own staff and their staff."

"The name would be acceptable to everyone and would be something reflecting the country's own ethos. As of now Indian Bank name appeals to everyone," she said.

She said information technology major Tata Consultancy Services has been roped in as the IT partner for both the

banks (Indian Bank and Allahabad Bank) as the core banking system of both the banks were on same platform.

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