Indian Bank Q1 net profit rises 41% to Rs 1,709 crore

New Delhi: State-owned Indian Bank on Thursday posted a 41 per cent increase in net profit at Rs 1,709 crore in the April-June quarter, mainly due to decline in bad loans.

The Chennai-based lender had posted a net profit of Rs 1,213 crore in the year-ago period.

Total income in the first quarter of the current fiscal rose to Rs 14,759 crore as against Rs 11,758 crore, Indian Bank said in a regulatory filing.

The lender's interest income also increased to Rs 13,049 crore from Rs 10,153 crore in the same quarter a year ago.

On the asset quality side, the bank witnessed improvement with the gross Non Performing Assets (NPAs) easing to 5.47 per cent of the gross advances by June 2023 from 8.13 per cent a year ago.

The net NPA too declined to 0.70 per cent as against 2.12 per cent in the same period of the previous year.

As a result, provisions for bad loans declined to Rs 930 crore as against Rs 2,002 crore in the same quarter a year ago.

However, the capital adequacy ratio of the bank declined to 15.78 per cent at the end of June compared to 16.51 per cent in the year-ago period.