On October 26, 2023, Indian Bank: BSE, NSE: INDIANB announced its Q2 2023-24 financial results, with sustained robust financials and the bank’s international business achieving a record high of ₹11.33 lakh crore.
Table of Content
Prominent Highlights Of Indian Bank
Here are the Q2 highlights:
- In Q2, the Net Profit of the bank rose by 62% YoY and stood at ₹1,988 Cr at the end of Q2, relative to ₹1,225 Cr at the close of the same quarter of the previous fiscal year.
- Profit Before Tax is up by 75% YoY and stands at ₹2,752 Cr in Q2, compared to Q2 FY 22-23 when it stood at ₹1,571 Cr.
- The Operating Profit is also up at ₹4,303 Cr, a rise of 19% YoY, relative to ₹3,629 Cr in the same quarter of the last fiscal year.
- Net Interest Income witnessed a rise of 23% YoY and this stood at ₹5,741 Cr for Q2, again this was an increase from the quarter of the past fiscal year.
- Domestic NIM went up by 23% YoY.
- ROA and ROE have improved by 1.06% and 19.90%, respectively, in Q2. In the same quarter of the previous fiscal year, these were at 0.71% and 13.83, respectively.
- The bank’s Total Business registered a growth of 10% YoY, and this was worth ₹1133091 Cr in Q2 FY 23-24, compared with ₹1026801 Cr in Q2 FY 22-23.
- Advances, including agri, MSME, and retail advances, grew in Q2. Deposits also increased in the quarter of the present fiscal year, as did home loans.
Other Highlights
In its Q2 report, the bank had the additional following aspects of its operations and systems to report:
- The Bank has 5819 domestic branches, inclusive of rural, urban, and semi-urban locations.
- The bank has 3 branches located abroad.
- Mobile banking customers increased YoY by 47%.
- Transactions and UPI users have also increased on a YoY basis.
- 86% of user transactions have been digitally conducted.
- The bank’s focus is on the strategic expansion of its business with a principal boost to MSME, retail, and agricultural segments, with a target of growth at 10%-12% in FY 23-24. The main areas that the bank wishes to stress are digital banking, and the prosperity of its customers via this channel of operations.
- The bank is also focusing on the development of its workforce, with an emphasis on grooming, the promotion of gender diversity, and preparing employees for leadership roles.
Also Read: Indian Bank Share Price
Financial Results Of Indian Bank in a Nutshell (Operating Profit and Net Profit) in ₹ Cr (unless indicated in %):
| Metrics | Q2 FY 23-24 | Q2 FY 22-23 | Q1 FY 23-24 | QoQ % | YoY % |
| Net Interest Income | 5,741 | 4,684 | 5,703 | 1% | 23% |
| Operating Income | 7,733 | 6,512 | 7,413 | 4% | 19% |
| Operating Profit | 4,303 | 3,629 | 4,135 | 4% | 19% |
| Profit Before Tax | 2,752 | 1,571 | 2,394 | 15% | 75% |
| Net Profit | 1,988 | 1,225 | 1,709 | 16% | 62% |
About Indian Bank
Indian Bank is an Indian public sector bank, with headquarters in Chennai, in Tamil Nadu. It opened its doors in 1907. It serves more than 100 million customers and boasts 41,645 employees, 5,814 branches, and 4,929 ATMs as well as cash deposit machines. The total business of the bank has proudly reached ₹1,094,752 crore (US$140 billion) as of 31 March 2023.
The bank’s information systems, technology, and security processes are approved to meet ISO27001:2013 standards. Additionally, the bank has branches abroad, in Colombo and Singapore, as well as Foreign Currency Banking Units in Jaffna and Colombo. Furthermore, it has 227 correspondent banks located in 75 countries. The Government of India has owned the bank since 1969. As per a statement made by Nirmala Sitharaman, the Indian Finance Minister on 30 August 2019, the Allahabad Bank merged with the Indian Bank on 1 April 2020. This made Indian Bank hold the status of the 7th largest bank in India. In 2023, the bank witnessed its international business at ₹10.95 lakh crore. In the first quarter of 2023, the business was at more than ₹11 lakh crore.
Source:
https://www.indianbank.in/departments/financial-results-ib/
