Q2 2025 Indian Bank Earnings Call Transcript
Key Points
- Indian Bank (BOM:532814) reported a 36% increase in net profit, driven by an 8% growth in net interest income and a 44% recovery in bad debts.
- The bank's business grew by 10%, with credit growth at 12% and retail credit increasing by 15%.
- Asset quality improved, with gross NPA reducing from 3.77% to 3.48% and net NPA decreasing, supported by a provision coverage ratio increase from 96.6% to 97.7%.
- The bank maintained a strong capital adequacy ratio of 16.55%, which increases to 17.84% when including half-yearly profits.
- Digital transformation initiatives have been successful, with 91% to 92% of transactions now occurring digitally, and significant growth in UPI users and net banking users.
- Business growth in the first half of FY25 was relatively low, with deposit growth at only 0.75% and credit growth at 3.16%, raising concerns about meeting full-year targets.
- The SMA book increased slightly due to a large government-guaranteed account, indicating potential stress in certain segments.
- The bank's reliance on borrowings has increased, which could impact liquidity and financial stability if not managed carefully.
- There is a need to raise significant deposits and disburse substantial credit in the remaining months to meet annual targets, posing a challenge.
- The housing finance book saw a significant reduction, with a major account being prepaid, impacting the overall loan book mix.
Good evening, sir. Good evening.
Good evening. Good evening. Can we start, sir?
Yeah, good evening everyone. We welcome you all to Indian Banks post results conference call for the second quarter FY 25 hosted by K Global from the top management we have with us today, Shri SHANTI LAL JAIN MD and CEO, Shri Mahesh Kumar Bajaj executive director, Shri Ashutosh Choudhury executive director, Shri Shiv Bajrang Singh executive director and Shri Brajesh Kumar Singh Executive Director.
I request the MD sir to first briefly summarize the key highlights from the second quarter results over to the MD, sir.
Yes, good evening. Welcome to all analysts and investors in the post result conference.
We have declared our results today and you might be having the investor presentations.
Few highlights. We have our business has grown by 10% and deposit of this deposit has grown by 8% and the credit is
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