Indian Bank — Earnings Release 2021

Jul 19, 2021

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Ref. No.: ISC/141/ 2021-22 Date: 19.07.2021

T h V ic P id t e e re s e n l S f N ti k E h In d ia L im ite d to a o n a c x c a n g e o "E h P la " B d K rl C le x c a n g e z a a n ra u a o m p x , , B d E M b i - 4 0 0 0 1 st 5 a n ra a m a u ,	T h V ic P id nt e e re s e B S E L im ite d P h ir J ej ib h i T o ze e a o e rs w l S D la M b i - 4 0 0 0 0 1 tr t a e e u m a ,
S S N E b l IN D IA N B y m o :	S ri C d 5 32 8 14 c p o e :

Dear Sir/Madam,

Subject: Press release on Unaudited / Reviewed Financial Results of the Bank for the First Quarter of FY 2021-22 ended on June 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 First Quarter of FY 2021-22 ended on June 30, 2021.

This is for your information, record and dissemination please.

Yours faithfully,

.7 A4Fili

(Dina Nath umar AGM & Company Secretary

EncL a/a.

nomi PRESS RELEASE 19.07.2021

Indian Bank announces results for 01 FY22 Operating Profit up by 26% YoY, Net Profit tripled to X1182 cr

The Board of Directors of Indian Bank approved the Balance Sheet and Profit & Loss for the Q1 FY22 at their meeting held on 19thJuly 2021 at Chennai.

Highlights — Q1FY22

• NIM at 2.85%, improved by 2 bps YoY
• Net Interest Income rose by 3% YoY
• Cost of Funds at 4.08%, 81 bps reduction YoY
• ) CASA Ratio at 41%, CA YoY growth 18%, SB YoY growth 8%
• Cost to Income Ratio at 40.86%, improved by 620 bps YoY
• Capital Adequacy Ratio at 15.92%, improved by 247 bps YoY

Profitability: Q1 FY22

Operating Profit and Net Profit

• The Bank's Operating Profit has registered a growth of 26% YoY to X3472 Cr for Q1FY22 as against X2753 Cr for Q1FY21. On a QoQ sequential basis it increased by 36%.
• The Bank's Net Profit for the quarter grew by 220% YoY to 11182 Cr from X369 Cr in Q1FY21. On a QoQ sequential basis Net Profit declined by 31%.

Net Interest Income and Net Interest Margin

• The Bank's Net Interest Income (NII) grew by 3% YoY to X3994 Cr in Q1FY22 from X3874 Cr in Q1FY21. On QoQ sequential basis it surged by 20%.
• Net Interest Margin (NIM) (Domestic) improved by 51 basis points (bps) on QoQ sequential basis. It stood at 2.85% for Q1FY22 as against 2.83% for Q1FY21.
• Net Revenues (Net interest income plus other income) for Q1FY22 grew by 13% to Cr from X5201 Cr for Q1FY21. It was X5078 Cr in previous quarter.

Non-Interest Income

• Non- Interest Income for Q1FY22 is up by 41% YOY and 8% QoQ . It stood at 1877 cr as against X1327 Cr in Q1FY21 on account of higher recovery in bad debts and rise in forex income.

Provisions and contingencies

• Provisions & Contingencies for Q1FY22 were at 12290 Cr as against 2384 Cr for the corresponding quarter of previous year and X839 Cr in Q4FY21.
• Operating Expenses contracted by 2% to X2399 Cr in Q1FY22 as against 12448 Cr in the corresponding quarter of FY21. On QoQ sequential basis it moderated by 5%.
• Cost-to-Income Ratio stood at 40.86% in Q1FY22 as against 47.06% in Q1FY21 and 49.82% in Q4FY21 due to substantial reduction in staff expenses and rise in non interest income.
• Return on Average Assets (RoA) was at 0.75% for Q1FY22 as against 1.09% in the previous quarter. There is an improvement of 50 basis points in the corresponding quarter of the previous financial year.
• Return on Equity (RoE) for Q1FY22 was 15.20% as against 5.49 % as on Q1FY21. For Q4FY21, the same is at 23.14%.

Assets and Liabilities

• Domestic CASA deposits grew by 9% YoY while moderated by 3% QoQ and touched X220874 Cr in Q1FY22. Share of CASA to Total Deposits was 41% in Q1FY22 as against 42% a year ago. Current account deposits grew by 18% and in Savings account deposits by 8% YoY.
• Advances grew by 6% to 1389625 Cr in Q1FY22 over 1366787 Cr a year ago, primarily driven by growth in RAM sector (13%) of which growth in Retail, Agriculture and MSME was 9%, 17% and 12% respectively. On QoQ sequential basis advances marginally declined by 0.2%.
• Balance sheet size grew by 8% YoY and was X621669 Cr as on ³⁰th Jun'21 as against 1575766 Cr as on 30thJun'20. On a sequential QoQ basis, it declined by 0.7%.
• Total Business recorded YoY growth of 9% reaching the level of 1929708 Cr in Jun'21 as against X855896 Cr in Jun'20. On a sequential QoQ basis it increased by

Total deposits grew by 10% YoY and 0.4% QoQ and stood at X540082 Cr as on Jun'21 as against X489109 Cr in Jun'20.

• Priority Sector portfolio increased to X144680 Cr in Jun'21 from 138786 Cr in same quarter of the previous year. Priority sector advances as a percentage of ANBC stood at 43.78% as against the regulatory requirement of 40%.

Capital Adequacy

• For Q1FY22, Bank's total Capital Adequacy Ratio (CRAR) was at 15.92% with 247 bps YoY increase. On a sequential quarter basis, it increased by 21 bps from 15.71% in Q4FY21.
• Tier-I CRAR was at 12.22% in Jun'21 against 10.47%, up by 175 bps YoY. On a sequential quarter basis, it increased by 28 bps from 11.94% in Q4FY21.

Asset Quality

• GNPA was at 9.69% of Gross advances as on Jun'21 brought down by 121 bps YoY and 16 bps QoQ.
• The Net NPA ratio declined to 3.47% at 30thJun'21 from 3.76% in Jun'20. It stood at 3.37% at 31stMar'21.

R s i C n r	Q 1F Y 21	Q 4F Y 21	Q 1F Y 22	Q oQ %	Y oY %
	E ni & P fi t ar ng s ro
In I te st re nc om e	10 12 0	89 04	96 24	8	-5
In E te st re xp en se s	62 46	55 70	56 29	1	-1 0
N I In et nt t er es co m e	38 74	33 34	39 94	20	3
tic N IM % D om es	2 .8 3	2. 34	2 .8 5	5 bp 1 s	bp 2 s
N -I In nt t on er es co m e	13 27	17 44	18 77	8	4 1
O ti P fi t pe ra ng ro	27 53	25 4 8	34 72	36	26
lo vi si L oa n ss p ro on s	18 30	28 70	17 47	-3 9	-5
fi N P et t ro	36 9	17 09	11 82	-3 1	22 0

Key Summary of Q1FY22 results

R s i C n r	Q I 1F Y 21	Q 4F Y 21	Q 1F Y 22 1	Q oQ %	Y oY %
	S B al h t an ce ee
G A dv (G lo ba l) ro ss an ce s	36 67 87	39 03 17	38 96 25	-0 .2	6
D ti C te om es c or po ra	16 35 66	16 05 95	15 90 11	-1	-3
D tic R A M om es	19 4 30 3	2 18 94 2	2 18 73 0	-0 .1	13
O f hi ch : H L om e oa ns w	40 74 7	4 18 3 1	40 99 5	-2	1
D it s( G lo ba l) ep os	4 89 10 9	53 80 7 1	54 00 82	0 .4	10
D tic C A SA om es	20 25 45	22 70 27	22 0 10 9	-3	9
D ti T D it om es c er m ep os s	27 87 10	30 22 38	3 11 26 7	3	12
C A SA io ( G lo ba l) % at r	42	42	4 1	b -1 40 p s	bp -6 3 s
G PA N ro ss	39 5 96	38 45 5	37 75 9	-2	-6
N N PA et	12 75 5	12 27 1	12 65 3	3	-1
S li d in th te pp ag es ur g e qu ar r	52 3	82 92	42 04	-4 9	70 4

R io % at s	I Q 1F Y 21	Q 4F Y 21 I	Q 1F Y 22	Q oQ b ps	Y oY b ps
A Q al it et ss u y
G N PA	10 0 .9	.8 5 9	9 .6 9	-1 6	-1 2 1
N N PA	3. 76	3. 37	3. 47	10	-2 9
PC R (w ith A U C )	.5 80 2	82 .1 2	82 .0 0	-1 2	14 8
PC ( ith t A C ) R U w ou	68 .0 9	68 .0 9	66 .4 9	-1 60	-1 60
C di t C t re os	1. 93	2 .9 9	1. 8 1	-1 18	-1 2

	Q 1F Y 21	Q 4F Y 21	Q 1F Y 22	Q oQ b ps	Y oY b ps
C it al R io at ap s
CE T -1	10 .3 0	11 .2 7	11 .5 7	30	12 7
ie T -1 r	10 .4 7	11 .9 4	12 .2 2	28	17 5
CA R	13 .4 5	15 1 .7	15 2 .9	2 1	24 7

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MD and CEO's quote:

After successfully completing the amalgamation during the previous year, the Bank is now reaping the synergy benefits. With the vaccination program picking up and the economy expected to open up in the coming quarter, the Bank is well positioned to leverage the growth opportunities.

Bank has registered 26% growth in operating profit and tripled the net profit to 1182 Cr YoY. RAM sector registered 13% YoY growth and is at 58% of gross credit. The capital adequacy ratio of the Bank is at 15.92 % giving comfort to Bank in ramping up the business. Oversubscription of QIP in the month of Jun'21, adding 1650 Cr to equity, is another testimony to ever increasing market trust in the strong fundamentals of the Bank.

Post amalgamation the synergy benefits are coming in terms of cost efficiencies resulting in cost to income ratio of 40.86% as against 47.06% in the previous year.

Merger of IT operations and integration of systems has resulted in economies of scale through vendor rationalisation, finer pricing on AMCs and improved operational efficiencies. Bank has made long term investment in strengthening IT infrastructure, IT security and Network operations. These investments are being leveraged through various Digital Transformation initiatives and the benefits will be visible in the coming years through increased business, profitability and enhanced customer experience.

It gives me great pleasure to announce that Bank has declared dividend of 20% for FY21. Following the strong financial results for FY21, Bank has paid Performance Linked Incentive equivalent to 15 days' pay to the employees.

The Bank continues to support the MSMEs through its business mentoring program MSME Prerana' and start-ups through 'Ind Spring Board' initiatives. Bank has also extendedMSME Prerana' programs in vernacular languages in the states of Maharashtra and Telangana during the current quarter.

I would like to express my sincere appreciation and thanks to the dedicated and committed employees of the Bank who braved all odds and stood by the Bank in these challenging times.

I also thank our valued customers for their continued patronage and steadfast support to the Bank.