Indian Bank’s Profit Up by 23.7% in June Quarter

Chennai, July 24, 2025 – Indian Bank (NSE: INDIANB) reported a 23.7% year-on-year (YoY) rise in standalone net profit for the quarter ended June 30, 2025 (Q1FY26) at ₹2,972.82 crore, compared to ₹2,403.42 crore in Q1FY25. The bank’s robust operational performance was supported by healthy growth in interest income and stable asset quality.

Standalone Financial Highlights (₹ in crore)

• Net profit for Q1 FY26 came in at ₹2,972.82 crore. It reflects a 23.7% year-on-year (YoY) growth and a 0.6% rise quarter-on-quarter (QoQ).
• Total income stood at ₹18,721.31 crore, up 10.5% YoY and 0.7% QoQ, indicating steady revenue expansion.
• The bank’s Gross Non-Performing Assets (NPA) ratio improved to 3.01%, down from 3.77% in Q1 FY25 and 3.09% in the previous quarter.
• Net NPA also declined to 0.18%, showing a healthy improvement from 0.39% in Q1 FY25 and slightly lower than 0.19% in Q4 FY25.

Segment-Wise Performance

• In Q1 FY26, Indian Bank reported strong traction across key verticals, reflecting broad-based growth.
• Retail Banking led the performance with revenue of ₹7,837.69 crore, registering a 16.5% year-on-year (YoY) growth.
• Corporate and Wholesale Banking contributed ₹5,940.49 crore, posting a modest 1.4% YoY growth.
• Treasury Operations brought in ₹4,744.08 crore, marking a solid 13.9% growth YoY.
• Revenue from Other Banking Operations stood at ₹199.05 crore, up 0.8% YoY.

The bank’s retail book remained the primary growth driver, contributing nearly 42% of total revenue for the quarter.

Consolidated Highlights

On a consolidated basis, Indian Bank posted a net profit of ₹2,276.37 crore, down 11.2% YoY due to an exceptional loss of ₹766.59 crore arising from the write-off of its stake in Saptagiri Grameena Bank following its amalgamation with Andhra Pradesh Grameena Bank.

Key Ratios

• Capital Adequacy Ratio improved to 17.80% in Q1 FY26, up from 16.47% in Q1 FY25, indicating a stronger capital position.
• The bank’s Common Equity Tier-1 (CET-1) Ratio also strengthened to 15.26%, compared to 13.42% a year ago.
• Return on Assets (RoA) rose to 1.34% from 1.20%, reflecting better asset productivity and profitability.
• The Cost-to-Income Ratio remained largely stable at 51.98%, compared to 51.85% in the same quarter last year, indicating efficient cost management.

Asset Quality

Indian Bank reported improved asset quality metrics:

• Gross NPA declined to ₹18,066.88 crore from ₹20,302.16 crore YoY.
• Net NPA halved to ₹1,035.56 crore vs ₹2,026.59 crore last year.
• Provision Coverage Ratio stood at 98.20%.

Management Commentary

Binod Kumar, Managing Director & CEO, said: “We continue to deliver strong operational and financial performance led by stable margins, strong treasury gains, and improving asset quality. Our provisioning buffers and digital expansion reinforce our growth outlook.”

Strategic Outlook

The bank is enhancing its retail and digital banking footprint through its 3 digital banking units (DBUs), as per RBI guidance. It also acquired ₹312 crore worth of retail assets under direct assignment, reflecting its focus on asset-light growth.

Capital & Balance Sheet Position

As of June 30, 2025:

• Total Assets: ₹8,95,503 crore (Standalone)
• Net Worth: ₹60,383 crore
• Total Borrowings: ₹53,007 crore
• Government Shareholding: 73.84%

Indian Bank Stock Performance

Indian Bank shares have gained 5.08% trading at ₹656 on July 24, 2025. Indian Bank shares have gained 15% in the last year, 26% in the year-to-date, and 5.27% in the previous month.

Indian Bank’s stock opened at ₹627.50. The stock traded with an intraday high of ₹657.00 and a low of ₹625.25. This range reflects a narrow trading range. The bank’s market capitalisation stands at ₹87,890 crore. Over the last 52 weeks, the stock has moved between a low of ₹473.90 and a high of ₹658.50.

About Indian Bank

Indian Bank is a major public sector bank listed on NSE and BSE, headquartered in Chennai. It offers a full suite of financial services across retail, corporate, MSME, and treasury verticals. The Government of India holds a 73.84% stake in the bank. The bank is also the sponsor of multiple regional rural banks and maintains subsidiaries in merchant banking and housing finance.

REF:https://nsearchives.nseindia.com/corporate/INDIANB_24072025131736_SE_Result_Q1FY26.pdf

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