Indian Bank clocks Q3 profit at Rs 514 crore ANI | Updated: Jan 22, 2021 15:27 IST
Chennai (Tamil Nadu) [India], January 22 (ANI): Public sector Indian Bank on Friday reported a net profit of Rs 514 crore for the October to December quarter as against a net loss of Rs 1,739 crore in Q3 FY20.
While net interest income rose by 31 per cent to Rs 4,313 crore from Rs 3,293 crore, provisions and contingencies came down to Rs 2,585 crore as against Rs 4,555 crore in the same period.
The return on average assets was at 0.35 per cent for Q3 FY21 against 0.28 per cent in Q2 FY21. The return on equity was 7.13 per cent in Q3 FY21 against 6.88 per cent in Q2 FY21.
Indian Bank, Chennai-based public sector lender, posted a net profit of Rs 514 crore in third quarter ended December 2020 (Q3FY21), backed by improvement in interest margins. It had posted loss of Rs 1,739 crore in quarter ended December 2019. On sequential basis, net profit rose by 25 per cent over the quarter ended September 2020. Its stock closed 1.56 per cent higher at Rs 90.90 per share on BSE. Allahabad Bank amalgamated with Indian Bank from April 01, 2020 and the combined financials for Q3Fy21 and March 2020 have been arrived at by aggregation of audited numbers of the two banks. The Net Interest Income (NII) rose by 31 per cent for Q3FY21 to Rs 4,313 crore from Rs 3,293 crore for Q3FY20. The Net Interest Margin (NIM) (Domestic) was up 42 basis points (bps) and is at 3.13 per cent for Q3FY21 as against 2.71 per cent for Q3FY20.
Private sector lender YES Bank has posted a net profit of Rs 151 crore in the third quarter ended December 2020 (Q3FY21), on improved net interest margins. It had booked a staggering loss of Rs 18,560 crore in third quarter ended December 2019 (Q3FY20). Sequentially, net profit was up 16.5 per cent over September 2020 (Q2FY21). Its stock closed 1.56 per cent higher at Rs 90.9 per share on Bombay Stock Exchange (BSE). It posted a 29.7 per cent in net interest income (NII) at Rs 2,560 crore over September 2020 quarter. Also, net interest margins (NIMs) improved by 30 basis points to 3.4 per cent over September 2020. However, NIM may not sustain at the current level as there would be interest income reversal for after the Supreme Court gives verdict on asset quality status, said its managing director and chief executive Prashant Kumar. The lender, which is backed by State Bank of India, has guided for NIM to around three per cent for the next financial year (FY22).
Read more about India Inc s big boys: Share of large borrowers on banks books decline on Business Standard. However, large advances in the SMA-0 (special mention accounts) category registered a quantum jump (155.6 per cent) over the previous quarter and 245.6 per cent over March 2020 levels
The governor also implored banks to make more investments in information technology to build robust platforms and for operational purposes as well as for fortifying public confidence in digital banking.