This PSU bank introduced objective performance appraisal system for Employees

 

Over the next three years, Indian Bank, a well-known public sector lender, intends to open 300 additional branches to increase the size of its branch network. The bank will be present in every district headquarters nationwide thanks to this development. 

To improve its competitiveness and strengthen its leadership pipeline, the bank is also starting a leadership development program that will train some 400 staff. The strategy for branch expansion Indian Bank's Managing Director and CEO, Binod Kumar, stated that the bank's top goal is branch expansion. 

We have opened 70 to 80 branches during the past two to three years. With the goal of opening 300 new branches during the next three years, we now intend to greatly grow our network," Kumar stated.

The bank intends to apply a cluster-based model, increase its presence in current sites, and concentrate on developing towns. The plan calls for opening branches in agribusiness clusters, MSME (Micro, Small, and Medium Enterprises), and expanding urban regions. The bank's long-term goal is to open a branch in each of the major district headquarters. 

Pay Attention to Employee Satisfaction The bank's growth plan heavily relies on employee satisfaction. Kumar underlined the significance of enhancing productivity through employee-centric initiatives and keeping top personnel. 

To better identify and reward strong performers, Indian Bank has implemented a more objective performance appraisal system. Kumar clarified, "This will help us distinguish between high performers and non-performers, thus motivating top talent."

Indian Bank has selected 400 staff members to participate in a year-long training program as part of its endeavors to develop a strong leadership team. Through project-based learning, classroom instruction, on-site training, and private coaching, the curriculum will concentrate on fostering managerial and strategic skills. 

In addition to bolstering efforts in compliance, IT, HR, and cybersecurity, the objective is to develop a strong pool of leaders capable of propelling corporate expansion. 

"Our leadership development programs will guarantee qualitative improvements in a number of operational areas in addition to boosting business growth," Kumar stated. 

Enhancing Resource Acquisition and CASA Indian Bank is concentrating on improving its Current Account Savings Account (CASA) percentage in addition to growing its branch network and leadership team.

The bank aims to increase its CASA ratio from 40% to 42%, despite the challenges in deposit mobilisation. To achieve this, the bank has expanded its Resource Acquisition Centers (RACs), opening 100 last year, with plans to open 25 more. 

The bank has also set up Resource and Government Relationship (R&G) Centers to improve relationships with government departments and offer banking solutions beyond account openings.

“CASA growth depends on customer satisfaction, convenience, and efficiency,” Kumar concluded, highlighting the importance of meeting customer expectations to drive deposit growth.

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Indian Bank Q3 Profit surges 35% YoY

The third quarter net profit of the state-owned Indian Bank increased by 35% year over year to Rs 2852 crore from Rs 2119 crore in the previous year due to fewer provisions and higher earnings. 

The quarter's net interest margin increased from 3.41% to 3.45%. Binod Kumar, the bank's new managing director, stated that the increase in profitability was a result of both a good recovery and higher net interest income. This position was taken up by Kumar earlier this month.

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At 4749 crore as opposed to Rs 4097 crore, the bank's operational profit was 16% higher year over year. Compared to Rs 5815 crore, net interest income increased by 10% to Rs 6415 crore. At Rs 1059 crore as opposed to Rs 1349 crore, the total provisions were less.

In keeping with the improvement in asset quality, provisions to cover bad loans totaled Rs 611 crore out of this, compared to Rs 906 crore. 

At the end of December, its gross non-performing assets ratio dropped from 4.47% to 3.26%. Compared to 0.53%, net NPA was 0.21%. The provision coverage ratio increased to 90.09%, a 219 basis point improvement.

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New MD & CEO appointed in Two Public Sector Banks

Two major public sector banks, Indian Bank and Punjab National Bank, have had their leadership changes authorized by the Appointments Committee of the Cabinet (ACC), the government said in two separate orders.Ashok Chandra, who is now Canara Bank's executive director, was named PNB's managing director and chief executive officer (MD & CEO) for a three-year term.

"The Appointments Committee of the Cabinet (ACC) has approved the proposal of the Department of Financial Services for appointment of Shri Ashok Chandra (DoB: 16.12.1968), Executive Director (ED), Canara Bank as Managing Director and Chief Executive Officer (MD&CEO), Punjab National Bank (PNB), for a period of three years w.e.f. the date of assumption of charge of the office, or until further orders, whichever is earlier," the order said.

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The new MD and CEO of Indian Bank is Binod Kumar, the Executive Director of PNB.After a performance assessment, Kumar, who was hired for a three-year tenure, may be eligible for a two-year extension.

After the Reserve Bank of India (RBI) allegedly made disparaging statements about the top executive, the Financial Services Institution Bureau (FSIB) revoked its previous recommendation, which was followed by his hiring.

"Appointment of Shri Binod Kumar (DoB: 01.01.1971), Executive Director, Punjab National Bank as Managing Director and Chief Executive Officer, Indian Bank for a period of three years w.e.f. the date of his assumption of charge of the post, or until further orders, whichever is earlier," stated the order.

The reports that the FSIB recommended Asheesh Pandey, executive director of Bank of Maharashtra, for the top job at Indian Bank in April 2024. The banking regulator then wrote to the finance ministry, requesting that it take its observations into account when assessing Pandey's candidacy.

According to the RBI, Asheesh Pandey's "behavior and conduct" during a supervisory findings exit meeting was "found not befitting his position and responsibilities concerning regulatory compliance."

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Indian Bank Q1 Results: Net profit soars 41%

 

State-owned Indian Bank on Monday posted a 41 per cent jump in its net profit to Rs 2,403 cr for the June 2024 quarter due to a decline in bad loans.

The Chennai-based lender had earned a net profit of Rs 1,709 cr in the year-ago period.

During the quarter, the bank's total income increased to Rs 16,945 cr against Rs 14,759 cr a year ago, Indian Bank said in a regulatory filing.

Its interest income grew to Rs 15,039 cr during the period under review from Rs 13,049 cr in the corresponding quarter a year ago.

On the asset quality side, the bank's gross non-performing assets (NPAs) improved to 3.77 per cent of gross advances as of June 30, 2024, from 5.47 per cent in the April-June quarter of the previous fiscal.

The net NPAs also declined to 0.39 per cent of the advances from 0.70 per cent a year ago.

As a result, provisions for bad loans declined to Rs 896 cr against Rs 930 cr earmarked during the same quarter a year ago.

The capital adequacy ratio of the bank increased to 16.47 per cent compared to 15.78 per cent on June 30, 2023.

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Indian Bank Q4 Net profit jumps 55%

Public sector lender Indian Bank reported a 55 per cent jump in net profit at Rs 2,247 crore in March quarter of 2023-24.

The bank had a net profit of Rs 1,447 crore in March quarter of the preceding fiscal.

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Total income increased to Rs 16,887 crore in March quarter of FY24, from Rs 14,238 crore in the fourth quarter of FY23.

Net Interest Income (NII) increased by 9 per cent YoY to Rs 6,015 crore in March quarter of FY24, from Rs 5,508 crore in March quarter of FY23.

For full 2023-24 fiscal, net profit went up by 53 per cent YoY to Rs 8,063 crore, from Rs 5,282 crore in FY23.

Total income for FY24 increased to Rs 63,482 crore, from Rs 52,085 crore in FY23.

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Indian Bank posts 52% rise in Q3 net profit

 

State-owned Indian Bank reported a 51.84 percent rise in its net profit to Rs 2,119.35 crore in the third quarter of financial year 2023-24. On a sequential basis, net profit of the lender rose 6.6 percent.

This was on the back of better asset quality and increase in fee based income.

Gross non-performing assets (NPA) of the bank as of December 31, 2023, stood at 4.47 percent, as against 4.97 percent last quarter and 6.53 percent last year. The company's net NPA stood at 0.53 percent, as against 0.60 percent in the last quarter and 1 percent last year.

In absolute terms, gross NPA eased to Rs 22,787 crore in October-December quarter, from Rs 24,488 crore in a quarter ago period and Rs 29,484 crore in a year ago period.

Net NPA fell to Rs 2,579 crore in December quarter, from Rs 2,826 crore a quarter ago and Rs 4,271 crore a year ago.

In the reporting quarter, the total deposit of the lender rose 10 percent on-year to Rs 6.54 lakh crore. On quarterly basis, deposits rose 2 percent.

Of the total deposit, bank have a domestic deposit of Rs 6.29 lakh crore and Rs 24,753 crore overseas deposits. On a yearly basis, domestic and overseas deposits grew 8 percent and 89 percent, respectively.

CASA deposit grew by 8 percent, savings deposit grew by 7 percent and Current deposit by 12 percent on a yearly basis. Domestic CASA ratio stood at 41.14 percent.

The advances of the state-owned lender grew 13 percent on-year to Rs 5.1 lakh crore in October-December quarter.

RAM (Retail, Agriculture & MSME) advances grew by 13 percent on-year to Rs 2.97 lakh crore in reporting quarter, from Rs 2.63 lakh crore in a year ago period. RAM contribution to gross domestic advances is 62.58 percent.

Retail, Agri & MSME advances grew by 14 percent, 16 percent and 7 percent on-year, respectively.

Home Loan (Including mortgage) grew by 12 percent on-year, Auto Loan by 46 percent on-year and Personal Loan by 30 percent on-year. Priority Sector portfolio stood at Rs 1.72 lakh crore in third quarter of the current financial year.

The net interest income (NII) of the bank rose just 6 percent on-year in the October-December quarter to Rs 5,815 crore. In the quarter ago period, it stood at Rs 5,741 crore and in a yearo ago period it stood at Rs 5,499 crore.

The net interest margins of the lender stood at 3.41 percent in October-December quarter, from 3.46 percent in a quarter ago period and 3.67 percent in a year ago period.

The total domestic investment of the lender increased in the reporting quarter by 13 percent to Rs 2.06 lakh crore. Domestic investment includes investment in SLR and non-SLR securities.

In SLR securities, investment in state government securities and central government securities rose 22 percent and 6 percent, on-year respectively. However, investment in treasury bills reduced by 33 percent.

As of December 31, 2023, the lender have securities worth Rs 1.47 lakh crore in held to maturity (HTM), Rs 59,024 crore in Available for Sale (AFS), and Rs 433 crore in Held for Trading (HFT).

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Indian Bank Q2 Net profit rises 61%

 

Public sector lender Indian Bank has reported a 61 per cent rise in net profit during the second quarter of the financial year FY24 to Rs 2,068.49 crore, compared to Rs 1,287.39 crore during the same period last financial year. The improved net profit is mainly due to a 23 per cent increase in net interest income (NII) for the quarter.

The total income of the Chennai-based bank also rose by 25 per cent during the quarter, reaching Rs 15,929.4 crore compared to Rs 12,714.2 crore in the same quarter of the FY23. "Indian Bank is strategically expanding its business with a major focus on retail, agriculture, and MSME sectors, targeting 10-12 per cent credit growth in FY24. Adopting digital banking as our core focus, we are committed to fostering financial growth and prosperity for individuals and businesses across diverse sectors of society. Through constant innovation, we aim to simplify processes, enabling quick and convenient banking," the bank said in a statement on Thursday. The bank's NII, the difference between interest earned and interest expended, stood at Rs 5,741 crore, compared to Rs 4,684 crore during the second quarter of the previous financial year.

The bank's gross non-performing assets (NPA) for the quarter under review stood at 4.97 per cent of gross advances, a decrease from 7.30 per cent in the corresponding period of the previous year. Similarly, the net NPA improved from 1.5 per cent at the end of September 2022 to 0.60 per cent as of September this year.

The provision coverage ratio also improved to 95.64 per cent from 91.08 per cent at the end of September 2022. The bank's return on average assets increased to 1.06 per cent in the second quarter of FY24, up from 0.71 per cent in the second quarter of FY23. Its return on equity also rose to 19.90 per cent from 13.83 per cent in September 2022.

The total business of the bank recorded year-on-year growth of 10 per cent, reaching Rs 1,13,3091 crore in September 2023, from Rs 1,02,6801 crore in September 2022. Its advances increased by 12 per cent year-on-year to Rs 4,92,288 crore in September 2023 from Rs 4,37,941 crore in September 2022.

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Indian Bank Q1 results: Net profit rises 41%

Chennai-based Indian Bank on July 27 reported a 40.8 percent rise in net profit at Rs 1,708.8 crore for the April-June quarter of FY24, as against Rs 1,213 crore a year ago.

The public-sector lender's gross non-performing assets (GNPA) declined to 5.47 percent from 8.13 percent during the quarter, while net non-performing assets (NNPA) fell to 0.70 percent from 2.21 percent.

Indian bank's Net Interest Income (NII) has jumped 26 percent to Rs. 5703 in June 2023 from Rs. 4534 in June 2022. However, CASA deposits increased by 5 percent y-o-y to Rs. 250242 crores in June 2023. The provision coverage ratio (PCR) has improved by 702 bps YOY 95.10 percent from 80.80 percent in June 2022.

Total income in the first quarter of the current fiscal rose to Rs 14,759 crore as against Rs 11,758 crore, Indian Bank said in a regulatory filing. The lender's interest income also increased to Rs 13,049 crore from Rs 10,153 crore in the same quarter a year ago.

However, the capital adequacy ratio of the bank declined to 15.78 per cent at the end of June compared to 16.51 per cent in the year-ago period.

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