Indian Bank — Earnings Release 2021

Oct 28, 2021

e p Indian Bank	et)11 254-260, 374 NuT14-1
it WNW= ALLANAIAD	- ITT, 41- 600 014
T4T fTh4RTW INVESTOR SERVICES CELL / website: www.indianbank.in eiti I	Corporate Office 254-260, Avvai Shanmugam Salai, Royapettah, Chennai - 600 014
t4c.i / e-mail : ibinvestorrelations@indianbank.co.in	1 -T*1-PT/Phone: 044-28134076/28134698/28134484

Ref. No.: ISC/256/ 2021-22 Date: 28.10.2021

The Vice President	The Vice President
National Stock Exchange of India Limited	BSE Limited
"Exchange Plaza", Bandra Kuria Complex,	Phiroze Jeejibhai Towers
Bandra East,	Dalai Street,
Mumbai - 400 051.	Mumbai - 400 001.
NSE Symbol : INDIANB	Scrip Code: 532814

Dear Sir/Madam,

Subject: Press release on Unaudited / Reviewed Financial Results of the Bank for the Second Quarter and Half Year of FY 2021-22 ended on September 30, 2021

In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing a copy of press release on Unaudited/Reviewed Financial Results of the Bank for the Second Quarter and Half Year of FY 2021-22 ended on September 30, 2021.

This is for your information, record and dissemination please.

Yours faithfully,

/7/

(Dina Nath Kumar) AGM & Company Secretary

Encl: a/a.

1).HD A@ /PRESS RELEASE 28.10.2021

Indian Bank announces results for Q2FY22 and H1FY22 Quarterly Operating Profit up by 11% YoY, Net Profit at T1089 Cr

The Board of Directors of Indian Bank approved the Balance Sheet and Profit & Loss for Q2FY22 and H1FY22 at their meeting held on 28 October 2021 at Chennai

Highlights-Q2FY22

• o Operating profit up by 11% at '3276 Cr
• o Net Profit up by 164% YoY at T1089 Cr
• o Deposit increased by 10% YoY
• o CASA grew by 8%, CA YoY growth 14%, S8 YoY growth 8%. CASA ratio maintained at 41%
• o Advances increased by 5% YoY
• o Retail, Agri, MSME advances grew by 14%, 16% and 8 % respectively. RAM sector grew by 13%. RAM contribution to domestic advances is 60%.
• o GNPA decreased by 13 bps on QoQ basis, NNPA reduced by 21 bps to 3.26 % from 3.47 % QoQ.
• o Capital Adequacy Ratio at 15.88%. CET improved by 11 bps from 11.57% to 11.68% QoQ. Tier I improved by 12bps from 12.22% to 12.34% QoQ

Profitability: Q2 FY22

Operating Profit and Net Profit

• The Bank's Operating Profit has registered a growth of 11% YoY to 13276 Cr for Q2FY22 as against 12942 Cr for Q2FY21.
• The Bank's Net Profit for the quarter grew by 164% YoY to X1089 Cr from T412 Cr in Q2FY21.

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• For the Half year ended September 21 Operating Profit at r6691 Cr grew by 17 % and Net Profit at r2271 crore recorded a growth of 191%.

Net Interest Income and Net Interest Margin

• The Bank's Net Interest Income (NII) declined by 1% YoY to T4084 Cr in Q2FY22 from U144 Cr in Q2FY21. On QoQ sequential basis it grew by 2%.
• Net Interest Margin (NIM) (Domestic) improved by 4 basis points (bps) on QoQ sequential basis. It stood at 2.89% for Q2FY22 as against 3.06% for Q2FY21.
• Net Revenues (Net interest income plus other income) for Q2FY22 grew by 6% to T6050 Cr from T5702 Cr for Q2FY21. It was T5815 Cr in previous quarter.

Non-Interest Income

• Non- Interest Income for Q2FY22 up by 26% YoY and 8% QoQ. It stood at T1966 Cr as against X1558 Cr in Q2FY21 on account of increase in recovery of bad debts (450%) and Forex income (42%).

Ratios

• Return on Equity (RoE) for Q2FY22 was 13.31% as against 5.88% as on Q2FY21.
• Return on Average Assets (RoA) was at 0.69% for Q2FY22 as against 0.28% in Q2FY21. There is an improvement of 41 basis points from the corresponding quarter of the previous financial year.
• Cost-to-Income Ratio stood at 45.85% in Q2FY22 as against 48.41% in Q2FY21 and 41.26% in Q1FY22. Due to higher contribution for employees, the ratio increased on QoQ basis.

Provisions and contingencies

• Provisions & Contingencies for Q2FY22 were at T2187 Cr as against 2530 Cr for the corresponding quarter of previous year and T2234 Cr in Q1FY22.

Operating Expenses

• Operating Expenses increased by 1% to T2774 Cr in Q2FY22 as against T2760 Cr in the corresponding quarter of FY21.
• In Operating expenses there was growth of 1% YoY sequentially due to provisioning on account of pension.

Assets and Liabilities

• Advances grew by 5% to T385730 Cr in Q2FY22 from T365896 Cr a year ago, primarily driven by growth in RAM sector (13%) of which growth in Retail, Agriculture and MSME was 14%, 16% and 8% respectively.
• The Bank has focused on capital light growth in credit.

• Total Deposits grew by 10% YoY and 2% QoQ and stood at k551472 Cr in Sep'21 as against X501956 Cr in Sep'20.
• CASA Deposits grew by 8% YoY and by 2% QoQ and touched X225309 Cr in Q2FY22. Share of CASA to Total Deposits stood at 41% in Q2FY22. Current account deposits grew by 14% and Savings account deposits by 8% YoY in Q2FY22.
• Total Business recorded YoY growth of 8% reaching the level of k937202 Cr in Sep'21 as against V167852 Cr in Sep'20. On a sequential QoQ basis it increased by 1%.
• Priority Sector portfolio increased to X141906 Cr in Sep'21 from 138244 Cr in same quarter of the previous year. Priority sector advances as a percentage of ANBC stood at 44% as against the regulatory requirement of 40%.
• RAM constitutes 60% of the total advances.

Capital Adequacy

• For Q2FY22, Bank's total Capital Adequacy Ratio (CRAR) was at 15.88%, increased by 224 bps YoY. On a sequential quarter basis, it decreased by 4 bps from 15.92% in Q1FY22 due to call up option exercised by Bank for Tier II Bond.
• Tier-I CRAR was at 12.34% in Q2FY22 against 10.74% in Q2FY21, up by 160 bps YoY. On a sequential quarter basis, it increased by 12 bps from 12.22% in Q1FY22.

Asset Quality

• GNPA was at 9.56% of Gross Advances as on Sep'21 brought down by 33 bps YoY and 13 bps 000.
• The Net NPA ratio stood at 3.26% at 30th Sep'21 as against 2.96% in Sep'20. It was at 3.47% on 30thJun'21.
• Fresh slippages were lesser at r3952 Cr compared to M204 Cr in 01.
• Cash recovery was higher atr831 Cr during Q2 and AUC recovery was higher at ?175 Cr compared to 01. Fresh slippage was high due to Corporate loans and crop loans.

Focus areas

Banks mantra is "Customer Centric Digitisation and Increased Earnings". Focus areas continue to be improving CASA, Quality advances, increase in Fee based income, improving collection efficiency, Recovery of NPAs and digitization.

Collective conviction, zeal and enthusiasm of team Indian Bank will ensure the 'Quality Growth' and 'Enhanced Profitability'.

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Key Summary of Q2FY22 results

I		Q2FY21 1 Q1FY22	Q2FY22	QoQ%	YoY%	I-I1FY21	H1FY22	YoY%
Earnings & Profit
Interest Income	10057	9623	9476	-2	-6	20177	19098	-5
Interest Expenses	5913	5629	5391	-4	-9	12159	11020	-9
Net Interest Income	4144	3994	4084	2	-1	8018	8078	1
NIM % Domestic	3.06	2.85	2.89	4 bps	-17 bps	2.97	2.87	-10 bps
Non-Interest Income	1558	1821	1966	8	26	2925	3787	29
Operating Profit	2942	3416	3276	-4	11	5735	6691	17
Loan loss provisions	1880	1747	2216	27	18	3710	3962	7
Net Profit	412	1182	1089	-8	164	782	2271	191

In Rs Cr	I Q2FY21		Q1FY22 I Q2FY22	QoQ%	YoY%
Balance Sheet
Gross Advances (Global)	365896	389626	385730	-1	5
Domestic Corporate	155926	159011	148007	-7	-5
Domestic RAM	200701	218730	226501	4	13
Of which: Home Loans	39548	40995	43138	5	9
Deposits( Global)	501956	540082	551472	2	10
Domestic CASA	207048	220109	224544	2	8
Domestic Term Deposits	286855	311267	318011	2	11
CASA ratio % (Global)	41	41	41
Gross NPA	36198	37759	36886	-2	2
Net NPA	10053	12653	11749	-7	17
Slippages during the quarter	249	4204	3952	-6	1487

Ratios %	Q2FY21	Q1FY22	Q2FY22	QoQ bps 1 YoY bps
Asset Quality
GNPA	9.89	9.69	9.56	-13	-33
NNPA	2.96	3.47	3.26	-21	30
PCR (with AUC)	84.39	82.00	83.32	132	-107
PCR (without AUC)	72.23	66.49	68.15	166	-408

Ratio %	Q2FY21	Q1FY22	Q2FY22	QoQ bps	YoY bps
Capital Ratios
CET -1	10.57	11.57	11.68	11	111
Tier -1	10.74	12.22	12.34	12	160
CAR	13.64	15.92	15.88	-4	224

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