Wednesday , June 23 2021

Indiens Bank's earnings reduce provisions



Indian Bank noted a downturn of 66.75% in the quarter September 30 to € 150.15 crore due to higher provisions, a sharp fall in profits from investment sales, land-to-market losses and lower recovery from depreciation accounts. The bank had a net profit of € 451.54 crore in the same period last year. Total revenues increased by 5.23% to € 5,129.17 crore.

Net interest income increased by 12.13% to € 1,730.93, while interest rates rose 12 points to 2.97% from the previous year. Total provisions increased by 12.65% to € 1,041 crore. The profit on investment sales dropped steeply to € 4.97 crore from € 262.22 crore while recovery in debited accounts went from € 66.6 crore to € 29 crore.

Gross assets (NPA) rose to 7.16% from 6.67% a year ago, while NPA increased 4.23% from 3.41%. The Bank's insurance coverage also covered 60.82% from 65.4%. Healthy taps of Ј 1 264 crore are added to the NPA burden, with contributions from infrastructure and road construction projects.

Asked if the bank entered a challenging phase in view of the increase of NPA and a decline in profit, Padmaja Chunduru, who handed over as CEO and CEO of the bank on September 21, told a media collection: "It's challenging times. For 1-2 accounts available at the National Company Law Tribunal (NCLT) [under the insolvency process], the end is in sight. "

Recycling is expected

She added that the bank hoped to recover about 250 krónur in the December quarter and about 600 crore in the quarter ending in March in these accounts, but that the process "could also be delayed". She said the bank also aimed at upgrading the status of loan accounts that had not gone to NCLT.

For greater recovery and upgrading among sliding accounts, the bank is planning to start a recovery process. She said, "I will lead a business loan account committee, which will focus on NPA. There is a weekly or two-week monitoring of assets. There is nothing that a focused recovery process can not achieve. The purpose is to arrest arrest."

She said that the bank's exposure to the coated IL & FS group was € 1,809 crore, of which two accounts had transformed NPA.

One of these had been fully equipped and the other, "which showed release in the quarter, has also taken place." Two additional group accounts are now on the bank's selection list, Chunduru added.

In connection with the liquidity pressures among the bank finance companies, the bank's advance to the NBFC increased to 12.4% of gross advances, an increase of 8.55%. "We do not see any problems with NBFC. The quality of our portfolio has remained healthy."

The bank's capital adequacy ratio at the end of September was 12.73%, compared with 31.16% the year before. "If you take into account that you recycle the profits and the tier 2 capital that the bank had recently raised, the capital adequacy ratio would be 13.24%," she added.

Advances to the retail, agriculture and MSME segment increased by 24.6% and the segment contributed approximately 58.8% of total advances. Deposits from current and savings account (Casa) increased by 7.29% while current deposits grew faster to 12.37%.


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