Indian Bank Q1 net profit rises 41% to ₹2,403 crore

State-owned Indian Bank on Monday posted a 41% jump in its net profit to ₹2,403 crore for the June 2024 quarter due to a decline in bad loans.

The Chennai-based lender had earned a net profit of ₹1,709 crore in the year-ago period.

During the quarter, the bank's total income increased to ₹16,945 crore against ₹14,759 crore a year ago, Indian Bank said in a regulatory filing.

Its interest income grew to ₹15,039 crore during the period under review from ₹13,049 crore in the corresponding quarter a year ago.

On the asset quality side, the bank's gross non-performing assets (NPAs) improved to 3.77% of gross advances as of June 30, 2024, from 5.47% in the April-June quarter of the previous fiscal.

The net NPAs also declined to 0.39% of the advances from 0.70% a year ago.

As a result, provisions for bad loans declined to ₹896 crore against ₹930 crore earmarked during the same quarter a year ago.

The capital adequacy ratio of the bank increased to 16.47% compared to 15.78% on June 30, 2023.

Shares of Indian Bank settled at 0.9% higher at ₹586.9 on the NSE.