NEW DELHI: India’s public sector bank on Wednesday reported a 52% jump in net profit at Rs 2,119 crore in the December quarter, on the back of improvements in core earnings and reduction in bad loans.
The Chennai-based lender earned a net profit of Rs 1,396 crore in the same quarter a year ago.
The bank’s operating profit was almost flat at Rs 4,097 crore against Rs 4,061 crore in December 2022.
Total income increased to Rs 16,099 crore during the quarter under review compared to Rs 13,551 crore in the same period last year, Indian Bank said in a regulatory filing.
Interest income also rose to Rs 14,198 crore over Rs 11,834 crore for the quarter ended December 2022.
On the asset quality front, the bank’s gross Non-Performing Assets (NPAs) declined to 4.47% of gross loans by the end of December 2023 from 6.53% a year ago.
Similarly, net NPAs or bad loans declined to 0.53% compared to 1% in 2022.
As a result, provisions for bad loans declined to Rs 906 crore from Rs 1,474 crore a year ago.
The bank’s coverage ratio stood at 95.90% at the end of the December quarter.
The capital adequacy ratio declined marginally to 15.58% from 15.74% at the end of the December quarter of FY22.