Indian Bank's Q1FY19 standalone net profit declines 43.8% yoy to Rs209.3cr: Misses Estimates

The bank’s standalone NII in the period stood at Rs1,807cr, up 23.8% yoy and 10.34% qoq.

Aug 09, 2018 03:08 IST India Infoline Research Team

Indian Bank Q1FY19

Standalone Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
NII 1,807 23.8
GNPA (%) 7.2 (17)
Provisions 1,029.56 43.9
Net Profit (adjusted) 209.31 [43.8]
***GNPA change in bps is on qoq basis
Indian Bank’s Q1FY19 NII improved 23.8% yoy to Rs1,807cr vs. Rs1,459.5cr in the corresponding period last year. Further, its net profit in Q1FY19 declined 43.8% to Rs209.3cr vs. Rs372.4cr yoy. The net profit was 19% below our estimates, due to higher provisions. The bank's GNPA for Q1FY19 stood at 7.2% vs. 7.37% qoq, indicating a decrease of 17bps. Meanwhile, its NNPA for the quarter stood at 3.79% vs. 3.81% qoq, indicating a decrease of 2bps.
  • Advances (global) grew 22.77% yoy to Rs 1,64,381cr, of which, domestic advances grew 23.73% yoy.
  • RAM sector grew Rs18,869cr (+26.8% yoy); retail grew 29.2% yoy; agriculture grew 27.5% yoy; and MSME grew 24.1% yoy.
  • Total deposits grew 9.77%. up from Rs1,9,1462cr to Rs2,10,170cr.
  • CASA deposits (mix) up 125 bps yoy (from 36.63% to 37.88%).
  • For the quarter, the cost of deposits, cost of funds, and yields for the quarter stood at Rs5.15%, 4.57%, and 8.57%, respectively.
  • Provisions for the quarter were increased 43.9% yoy to Rs1,029.6cr, while Provision Coverage Ratio stood at 64.38% for the quarter.
  • Capital Adequacy Ratio (CAR), as per Basel-III guidelines, was 12.77%, of which, CET 1: 11.22% + AT1: 0.33%; Total Tier-I: 11.55%, and Tier-II: 1.22%.
  • Cost to Income ratio increased 156 bps yoy to 42.25%.

Technical View:

Indian Bank ended at Rs354.80, down 19.45 points, or 5.2%, from its previous close of Rs374.25 on the BSE. The scrip opened at Rs374 and touched a high and low of Rs374 and Rs351, respectively. A total of 34,68,281 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.

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