Indian Bank posts 24% rise in Q1 net profit, asset quality improves

Business Standard

2 days ago

State-run Indian Bank posted a 24 per cent rise in net profit during the first quarter of 2025-26 (Q1FY26) to ₹2,973 crore, up from ₹2,403 crore during the same period in FY25.
The Chennai-based lender's total income also increased to ₹18,721 crore in Q1FY26, up 10.5 per cent year-on-year (Y-o-Y). Interest earned by the bank rose to ₹16,283 crore in the quarter, compared to ₹15,039 crore in Q1FY25.
The bank's asset quality showed signs of improvement with gross non-performing assets (NPA) dipping by 76 basis points (bps) Y-o-Y to 3.01 per cent in June 2025 from 3.77 per cent a year ago. Similarly, its net NPA also reduced by 21 bps to 0.18 per cent in June 2025 from 0.39 per cent in June 2024, according to Binod Kumar, managing director & chief executive officer (MD & CEO), Indian Bank. Its provision coverage ratio (PCR) improved by 154 bps Y-o-Y to 98.20 per cent in June 2025 from 96.66 per cent in June 2024. Slippage ratio was also contained to 0.94 per cent in Q1FY26, in comparison to 1.50 per cent in Q1FY25.
Indian Bank's operating profit improved by 5.97 per cent Y-o-Y to ₹4,770 crore in June 2025, from ₹4,502 crore in June 2024. Its net interest income also increased by 2.93 per cent to ₹6,359 crore in Q1FY26.
Further, the bank's return on assets (RoA) was up by 14 bps to 1.34 per cent, from 1.20 per cent last year. The return on equity (RoE) increased by 50 bps to 20.26 per cent.
During the quarter under review, the bank's gross advances rose by 11.50 per cent Y-o-Y to ₹601,147 crore. Retail, agriculture and MSME (RAM) advances grew by 15.93 per cent Y-o-Y to ₹363,221 crore. The RAM contribution to gross domestic advances increased to 65.34 per cent. Individually, retail, agriculture and MSME advances grew by 16.56 per cent, 16.40 per cent and 14.45 per cent Y-o-Y respectively.
Home loans (including mortgage) grew by 10.65 per cent Y-o-Y. Meanwhile, total deposits were up by 9.26 per cent Y-o-Y and reached ₹744,289 crore in Q1FY26. Domestic Casa ratio stood at 38.97 per cent, as on June 30.