Public sector bank Indian bank has reported a 42% decline in its profits for the quarter ended in March 2022.
Its profit for this quarter came in at Rs 984 crores for this quarter against Rs 1,709 crores last year. The loss in profit was on account of the bank's change of deferred tax asset calculation from an annual to a quarterly basis.
PNB Q4 results are live, read more.
“Till the last financial year (FY21), we used to do DTA adjustment on a yearly basis. So, the entire DTA adjustment was credited in Q4 FY21 and the profit was Rs 1,709 crore (in Q4 FY21). The bank changed the policy in June 2021 and we are now doing the adjustment on a pro-rata basis every quarter,” said S.L. Jain, MD & CEO of Indian Bank.
The bank's total income was up 9% from Rs 10,485 crores as the figure came in at Rs 11,405 crores for this quarter. Its operating profit rose 15% to Rs 2,738 crores on account of higher incomes and lower expenses. Net Interest Margin improved to 2.87% as Net Interest Income grew 28% YoY to Rs 4,255 crores.
The bank's asset quality improved with the gross non-performing assets ratio being at 8.47% against 9.85% a year ago. This assisted the bank as they reduced provisions to Rs 2046 crore against Rs 2870 crore. Total slippages during the quarter were Rs 3298 crore. The bank's capital adequacy ratio stood healthy at 16.53%.
The Board of Directors of the bank has recommended a Rs 6.50 per share or 65% final dividend. The stock of the bank has fallen 14% since the beginning of May as it has fallen for the past 4 days consecutively. It currently trades over 3% down to around Rs 138 per share.
Article by Aman Agarwal.
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