Indian Bank soars 9% post Q2 results 

Indian Bank Q2 net profit rises 11.5% to Rs 452 crore

Indian Bank Q2 net profit rises 11.5% to Rs 452 crore

FINANCIAL RESULTS FOR THE QUARTER/HALF YEAR ENDED SEPTEMBER 2017

The Board of Directors of Indian Bank approved the Bank’s audited results for the
Period ended September 30, 2017 at their meeting held in Chennai on Monday, November 06, 2017.

Profitability:
Operating profit registered a robust growth of 36.71%, touching `1375.61 crore for the
quarter ended September 30, 2017 as against `1006.21 crore for the corresponding
period of the previous Year. The Operating profit for the half year ended
September 30, 2017 was `2628.00 crore as against `1909.39 crore for the previous half
year ended September 30, 2016.Net profit at `451.54 crore for the quarter ended September 30, 2017 recorded a healthy YoY growth of 11.45% as against `405.15 crore for the quarter ended
September 30, 2016. For the half year ended September 30, 2017, the Net profit was
`823.95 crore as against `712.50 crore for the previous half year ended
September 30, 2016.

Total income of the Bank for the quarter ended September 30, 2017 was
`4874.17 crore, up by 6.45% over `4579.02 crore for the quarter ended
September 30, 2016. For the half year ended September 30, 2017, the same was
`9662.21 crore as against `9091.98 crore for the previous half year ended
September 30, 2016. Net interest income (interest income less interest expenditure) surged by 20.76% for the quarter ended September 30, 2017 and touched `1543.67 crore from
`1278.26 crore for the quarter ended September 30, 2016. For the half year ended
September 30, 2017 the same was `3003.15 crore as against `2514.58 crore for the
previous half year ended September 30, 2016.

Net revenues (Net interest income plus other income) boosted by a YoY growth of
21.22%, reached `2258.26 crore for the quarter ended September 30, 2017 as against
`1862.88 crore for the corresponding quarter of the previous year. Net revenues for the
half year ended September 30, 2017 was `4369.81 crore as against `3540.87 crore for
the previous half year ended September 30, 2016. Net interest margin (NIM) (Domestic) grew by 22 basis points and touched 2.92% forthe quarter ended September 30, 2017 as against 2.70% for the quarter ended . September 30, 2016. NIM (Domestic) for the half year ended September 30, 2017 was
2.85%.

Other income (non-interest revenue) grew aggressively by 22.23% over the
corresponding quarter ended September 30, 2016 and at `714.59 crore for the quarter
ended September 30, 2017, it was 31.64% of the net revenues. For the half year ended
September 30, 2017, the same was `1366.66 crore.Operating expenses for the quarter ended September 30, 2017 was `882.65 crore, as against `856.67 crore during the corresponding quarter of the previous year. Operating
expenses for the half year ended September 30, 2017 was `1741.81 crore.
Cost-to-income ratio was well contained at 39.09% for the quarter ended
September 30, 2017 as against 45.99% for the corresponding quarter ended September
30, 2016. Cost-to-income ratio for the half year ended September 30, 2017 was 39.86%
as against 46.08% for the half year ended September 30, 2016.

Provisions and contingencies for the quarter ended September 30, 2017 was
`924.06 crore mainly triggered by cases referred to NCLT as against `601.06 crore for
the corresponding quarter ended September 30, 2016. For the half year ended
September 30, 2017, the same was `1804.05 crore as against `1196.89 crore for the
previous half year ended September 30, 2016. Return on Average Assets (RoA) at 0.79% for the quarter ended September 30, 2017recorded a sequential growth of 13 basis points (Q1 17-18 : 0.66%) and was maintained at the same level as for the corresponding period last year. RoA for the half year endedSeptember 30, 2017 was 0.73% as against 0.69% for the previous half year ended September 30, 2016.

Return on Equity (RoE) improved by 38 basis points to 11.98% for the quarter ended
September 30, 2017 as against 11.60% for the quarter ended September 30, 2016.
For the half year ended September 30, 2017, RoE was 12.00%.

Assets & Liabilities:
Total balance sheet size as of September 30, 2017 was `2,29,958 crore as against
`2,05,522 crore as of September 30, 2016 thereby showing a YoY growth of 11.89%
Total deposits as of September 30, 2017 were `1,98,669 crore, recording an increase
of 11.51% over September 30, 2016.

Robust growth of 23.97% in Domestic CASA deposits thereby increased its share to
37.15% of total domestic deposits as on September 30, 2017 from 33.56% as on
September 30, 2016. Growth in CASA was primarily driven by an increase of 43.51% in
Current account deposits over the previous year to reach `12,029 crore and
supplemented by a growth of 20.66% over the previous year in Savings account
deposits to reach `59,687 crore. Advances at `1,44,206 crore as of September 30, 2017 grew by 14.21% over
September 30, 2016 (`1,26,266 crore) contributed by growth in all the sectors viz., Retail
(21.06%) [Of which Housing loan – 19.69%, Mortgage loan – 60.37% and
Vehicle loan – 26.55%], Agriculture (12.64%), MSME (28.91%), Corporate/Other Loans
(7.83%) and Overseas advances (10.74%).

Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at
13.16% as at September 30, 2017 (14.34% as at September 30, 2016) as against a
regulatory requirement of 10.25% including Capital Conservation Buffer of 1.25%.
Tier-I CAR was at 11.66% as on September 30, 2017 compared to 12.66% as at
September 30, 2016. Risk-weighted Assets were at `1,37,511.05 crore
(`1,18,937.32 crore as at September 30, 2016).

Asset Quality:
Gross non-performing assets was contained at 6.67% of Gross advances as on
September 30, 2017, trimmed by 61 bps from 7.28% as on September 30, 2016. Gross
non-performing assets as on June 30, 2017 was 7.21% In turn, Net non-performing assets came down from 4.62% as on September 30, 2016 to 3.41% of net advances as on September 30, 2017 with a sharp reduction of 121 bps. Net non-performing assets as on June 30, 2017 was 4.05%Stressed Advances as a percentage of Gross advances reduced to single digit
i.e. 9.69% as on September 30, 2017 from 12.35% as on September 30, 2016
Recovery from Bad debts improved by 62.08% for the Half Year ended
September 30, 2017 over September 30, 2016.

Network:
Bank’s Customer touch points as of September 30, 2017 was 8593 which included
2695 Domestic branches, 3 Overseas branches, 3202 ATM/BNAs and 2693 active
Business Correspondents. 1442 Domestic branches (54%) are in semi-urban and rural
areas.Number of employees of the Bank were 20,328 as of September 30, 2017.

National Goals:

Priority Sector portfolio increased from `50,903 crore as of September 30, 2016 to
`57,891 crore as of September 30, 2017. Priority sector advances as a percentage of
ANBC stood at 46.55% as against regulatory requirement of 40% as on
September 30, 2017.Advances to Weaker Section increased from `14,972 crore as on September 30, 2016  to `15,949 crore as on September 30, 2017, which forms 12.83% of ANBC (Regulatory
requirement 10%)

PRADHAN MANTRI MUDRA YOJANA (PMMY): Disbursements during the current
Financial Year were to the tune of `910.09 crore under various schemes viz., Shishu,
Kishore and Tarun.

Enrolled 78737 APY customers during the Current Financial Year, averaging
31 per branch as against the target of 30 per branch – Stood Third among all the
Banks.Categorised under “APY – Crowning the Challengers Campaign” Gold Category by
Pension Fund Regulatory and Development Authority (PFRDA)

New Technology Initiatives:
Digital Transactions: Ranked first among Public Sector Banks in achievement of target
for Digital Transactions given by Government of India upto August 2017 (As per the Data
provided by Ministry of Electronics and IT (MEITY)

Bharat Bill Payment System:

Launched Bharat Bill Payment System (BBPS) through Internet Banking mode, an integrated payment bill payment system in India offering interoperable and accessible bill payment service to customers through a network of agents, enabling multiple payment modes and providing instant confirmation of Payment.

NTRP and EPFO Payment Handling: One among the very few public sector Banks
empanelled by Non Tax Revenue Portal (NTRP) and Employees Provident Fund
Organisations (EPFO) for handling their online collections.

Awards and Accolades – Half Year September 2017:
Awards for ‘IT initiative for Transparency in the organization’ and ‘Vigilance
Awareness Initiative’. First Prize among Public Sector Commercial Banks for Excellence in performance under Self Help Groups (SHG) Bank Linkage Programme in Tamil Nadu during the year 2016-17.Assocham Services Excellence Award in Banking Services. “First Rank – National Award for Excellence in lending to Micro Enterprises during 2015-16”. ‘SHG award’ for contribution to SHG movement, being one among the two PSBs which
has credit linked the largest number of SHGs.