Indian Bank Q1 FY26 Net Profit Jumps 24% YoY to ₹2,973 Crore

25 Jul 2025 , 11:19 AM

Indian Bank posted a net profit of ₹2,973 crore for the April–June quarter, marking a sharp 24% rise over the same period last year. The public sector lender had reported ₹2,403 crore in net earnings during the corresponding quarter of FY25.

Total income came in at ₹18,721 crore for the quarter. This is up from ₹16,945 crore in the year-ago period. Interest income climbed to ₹16,283 crore, compared to ₹15,039 crore in the June 2024 quarter.

Operating profit stood at ₹4,770 crore, an improvement over ₹4,502 crore recorded a year earlier. Despite a moderate rise, it reflects stable margins and operational efficiency. On the asset quality front, the bank saw meaningful progress. Gross non-performing assets dropped to 3.01% of gross advances, from 3.77% in the same quarter last year.

Net NPAs halved to 0.18%, down from 0.39%, indicating stronger recoveries and tighter control over fresh slippages. With fewer stressed accounts and improved recoveries, the bank lowered its provisions to ₹691 crore. This is nearly half of the ₹1,258 crore it had set aside in the year-ago quarter.

The provision coverage ratio improved further, rising to 98.2% from 96.66% a year ago, giving the lender a solid cushion against any future stress. Return on Assets (RoA), a key profitability indicator, rose to 1.34% from 1.20%, reflecting more efficient deployment of the bank’s asset base.

The capital adequacy ratio also moved up, touching 17.80% at the end of June 2025, compared to 16.47% last year, comfortably above regulatory requirements.

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