Indian Bank sees Q1 net up marginally at Rs 369.26 cr

Sequentially, the lender had posted a net loss of Rs 217.73 crore in preceding quarter ended March 2020. Other income rose by 19% to Rs 1,327 cr compared to Rs 1119 cr in Q1 FY20. Operating profit grew by 23 % to Rs 2753 cr for the Q1 FY21 (Rs 2234 cr for Q1 FY20). With regard to June 2019 quarter and sequential January-March 2020 period numbers, the bank said the figures are related to standalone Indian Bank financials for pre-amalgamation period, hence not comparable with post amalgamation financials for the quarter ended June 30, 2020. Allahabad Bank was merged into Indian Bank with effect from April 1, 2020.

Padmaja Chunduru MD-CEO, Indian Bank said, “This is a 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, she said noting that the accounts under Moratorium constitutes above 23 pc and there is 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,” Chunduru added.

Recent initiatives: Indian Bank has recently reduced interest rates on its agri jewel loans at 7 pc fixed (Rs 583/- per lakh per month) 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 and the lending rate per gram is also high, it said. The Bank provides 80-85 pc of the jewel value as loan which is repayable in six months.