Q4 2024 Indian Bank Earnings Call Transcript
Key Points
- Indian Bank (BOM:532814) reported a 53% increase in net profit for FY24, driven by a 15% growth in Net Interest Income (NII) and a 10% rise in non-interest income.
- The bank's gross NPA ratio has significantly improved, dropping from 5.95% to 3.95% year-over-year, indicating better asset quality.
- CASA ratio remains strong at above 42%, with savings deposits growing by 7% and overall deposits increasing by 11%.
- Digital transformation initiatives have led to a 14-fold increase in digital business, reaching INR81,250 crore in FY24.
- Capital adequacy ratio stands at a healthy 16.44%, ensuring sufficient capital to support future growth.
- Employee expenses have increased by 23%, primarily due to wage revisions and provisions for retirement benefits, impacting overall expenditure.
- The bank's MSME credit growth is relatively low at 6%, indicating potential challenges in this segment.
- The new RBI guidelines requiring a 5% standard asset provision on project finance exposures could impact profitability, although the exact impact is yet to be determined.
- Despite strong growth in digital transactions, the bank's cost-to-income ratio has increased to 45%, up from 44% the previous year.
- The personal loan portfolio saw a slight decline quarter-over-quarter, raising questions about the bank's strategy in this segment.
Welcome, everyone to Indian Bank results con call for fourth quarter FY24 hosted by Emkay Global. From Indian Bank management, we have MD and CEO, Shri. Shanti Lal Jain-ji; and Executive Directors, Shri. Mahesh Kumar Bajaj, Shri. Ashutosh Choudhary, Shri. Bajrang Singh, Shri. Brajesh Kumar Singh.
We would request the MD sir to brief us with the key highlights of the results and strategic direction, particularly in terms of growth margins and asset quality. Post that, we will take up the Q&A from the participants. Over to you, sir.
So good evening. Warm welcome to all the analysts and investors in the post results conference call of Indian Bank. Today, we declared our Q4 and FY24 results. So I will just touch about the brief on the financial performance.
Our business has grown by 12% and of business, deposits have grown by 11% and credit has grown by 13%. In the deposit to 11% of our CASA has grown by 8%, of the saving deposit has
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