Indian Bank Q3 Results: Asset quality remains stable, other income aids profit

State-run Indian Bank Ltd. reported its December quarter results on Thursday, January 22, which were better on a year-on-year basis on most parameters.

Net profit for the period increased by 7.3% from last year to ₹3,061 crore from ₹2,852 crore. Profitability was also aided by a higher other income component, which increased by 20% from the year-ago period to ₹2,570 crore.

Net Interest Income, or core income earned by the lender also grew by 7.5% to ₹6,895 crore from ₹6,414 crore last year.

Asset quality for the lender remained stable on a sequential basis. Gross Non Performing Assets (NPAs) stood at 2.23%, better than the 2.6% figure in September, while Net NPAs remained largely unchanged at 0.15% from 0.16% in September.

In absolute terms, Gross NPA declined to ₹14,268 crore from ₹16,134 crore, while Net NPA stood at ₹967 crore from ₹983 crore in the September quarter.

Shares of Indian Bank are trading 2.5% higher after the results announcement at ₹871.15. The stock has risen 11% in the last one month and is back towards its 52-week high of ₹894.