Indian Bank’s Q1 FY2021 results

Amalgamation of Allahabad Bank came into effect on April 1st 2020. Accordingly, the combined financial as on 30th June 2019 have been arrived at by aggregation of audited numbers of combined figures of two Banks.


Income & Profit:

●         Total income for Q1 FY21 of the Bank grew by 8% to Rs. 11447 Cr from Rs.10580 Cr in Q1 FY20

●         Net interest income grew by 17 % to Rs. 3874 Cr as against Rs.3316 Cr in Q1 FY20

●         Other income increased by 19% to Rs.1327 Cr as against Rs.1119 Cr in Q1 FY20.

●         Operating Profit grew by 23 % to Rs. 2753 Cr for the Q1 FY21 as against Rs.2234 Cr for Q1 FY20.

●         Net Profit stood at Rs. 369 Cr as against Rs.492 Cr for the combined entity in Q1 FY20.

●         Net interest margin (NIM) (Domestic) was 2.83 %, against 2.87% in Q1 FY20.

●         Cost-to-income ratio improved to 47.06 % as against 49.63 % for Q1 FY20.

●         RoA was at 0.25 % and RoE was 5.49%.



●         Global Business increased by 7% to Rs. 855895 Cr with Global Deposits at Rs.489109 Cr (8% Y-o-Y) and Global Advance (gross) at Rs. 366787 Cr             (5% Y-o-Y).

●         Current Deposits grew by 7% to Rs. 24152 Cr and Savings Deposits by 12% to Rs.178954 Cr.

●         Domestic CASA deposits recorded a growth of 11 % with CASA share at 42 % as against 40% in Q1 FY20.

●         Gross Advances – Domestic grew by 6% to Rs. 357869 Cr driven by growth in Retail (11%). Agriculture and MSME grew by 3 % (Y-o-Y). Overseas advances witnessed a de-growth of 14%.

●         Priority Sector portfolio reached Rs. 138786 Cr and as percentage of ANBC stood at 43.78 % as against regulatory requirement of 40 %.

Capital Adequacy:

●         Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 13.45 % as against regulatory requirement of 10.875%.

●         Tier 1 CAR was at 10.47 % as against regulatory requirement of 8.875%.


Asset Quality:

●         GNPA improved to 10.90 % from 12.09 % as at June 2019.

●         NNPA improved to 3.76 % from 4.68 % as at June 2019.

●         Provision Coverage Ratio (PCR) improved to 80.52 % as against 74.35% in Q1 FY20. Excluding technical write off, it improved to 68.09% from 64.35%, as at June 2019.

●         Credit cost was at 1.93 % as against 1.84 % of Q1 FY20.




Commenting on the results, Ms Padmaja Chunduru MD & CEO, Indian Bank said, “This is a very satisfying performance in the first quarter post amalgamation. The key parameters of income, cost efficiency and profitability have improved both Y-o-Y and Q –o-Q. Asset quality has improved. The Bank has made upfront provisions in 2 accounts and also contingency provisions for COVID-19. The accounts under Moratorium constitutes above 23% and there is very good progress being made on the collection front, month on month. The amalgamation is going on track and we expect to complete it in the current Financial Year.”


Recent initiatives

Indian Bank has recently reduced interest rates on it Agricultural Jewel Loans at 7% fixed ( Rs 583/- per lakh per month) with a view to provide easy and cheap credit to needy farmers in the present pandemic situation. This interest rate is one of the least in the industry; moreover, the lending rate per gram is also high. The Bank provides 80- 85% of the jewel value as loan which is repayable in 6 months. Gold loans are disbursed very quickly with simple processing system and procedures, through more than 3000 branches across the country. Besides Agri Gold Loan, there are also varied Gold Loan Products for MSME and other consumption purposes also.

The MD & CEO. Ms Padmaja Chunduru last week on August 7, 2020 addressed the Bank’s 14th Annual General Meeting through Video Conferencing (VC) and Other Audio Visual Means (OAVM). The AGM was also attended by Board of Director and the Executive Directors. Due to COVID pandemic, shareholders of the Bank also participated through VC/OAVM.

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