Asset quality remains strong: The bank has maintained strong asset quality in Q1FY2026.
The fresh slippages of loans stood at Rs 1375 crore in Q1FY2026 compared with 1431 crore in previous quarter and Rs 1956 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 0 crore, upgradations at Rs 1046 crore and the write-off of loans was at Rs 441 crore in Q1FY2026. The standard restructured loan book of the bank stood at Rs 3076 crore end June 2025. Provision coverage ratio was steady at 98.20% at end June 2025 compared to 98.10% a quarter ago and 96.66% a year ago. The capital adequacy ratio of the bank stood at 17.8% with Tier I ratio at 15.7% at end June 2025. The risk weighted assets of the bank has increased 5% YoY to Rs 415308 crore end June 2025,| Asset Quality Indicators: Indian Bank | |||||||
| ' | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 18066.88 | 18178.86 | 18208.35 | 19148.00 | 20302.16 | -1 | -11 |
| Net NPA (Rs Crore) | 1035.56 | 1190.56 | 1126.86 | 1445.29 | 2026.59 | -13 | -49 |
| % Gross NPA | 3.01 | 3.09 | 3.26 | 3.48 | 3.77 | -8 | -76 |
| % Net NPA | 0.18 | 0.19 | 0.21 | 0.27 | 0.39 | -1 | -21 |
| % PCR | 98.20 | 98.10 | 98.09 | 97.60 | 96.66 | 10 | 154 |
| % CRAR - Basel III | 17.80 | 17.94 | 15.92 | 16.55 | 16.47 | -14 | 133 |
| % CRAR - Tier I - Basel III | 15.74 | 15.85 | 13.77 | 14.01 | 13.93 | -11 | 181 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
'
Business Highlights:
Healthy business growth: The business of the bank has increased 10% YoY to Rs 1345436 crore end June 2025, driven by 12% surge in advances to Rs 601147 crore. Deposits rose 9% to Rs 744289 crore at end June 2025.
CASA deposits ratio eases: The CASA deposits of the bank increased 4% YoY to Rs 277116 crore at end June 2025. The current account deposits increased 11% to Rs 38177 crore, while saving account deposits increased 3% to Rs 238939 crore end June 2025. The CASA ratio declined to 37.2% at end June 2025 compared to 39.0% at end June 2024, while eased from 38.4% a quarter ago. The term deposits have increased 12% to Rs 467173 crore end June 2025. Overseas deposits have increased 27% to Rs 34539 crore end June 2025.
Strong loan growth: Advances growth was driven by retail loans rising 17% YoY to Rs 123657 crore at end June 2025, while credit to agriculture increased 16% to Rs 144160 crore and MSME 14% to Rs 95404 crore at end June 2025. The corporate credit has moved up 2% to Rs 192660 crore end June 2025. The overseas credit has jumped 24% to Rs 45266 crore end June 2025.
Investment book of the bank increased 10% YoY to Rs 231604 crore at end June 2025. The SLR book moved up 13% to Rs 187656 crore, while non SLR book rose 1% to Rs 43948 crore at end June 2025. The AFS book moved up 6% to Rs 69233 crore, while HTM book increased 11% to Rs 142936 crore at end June 2025. The duration of the AFS investment portfolio stood at 3.53 years end June 2025 compared with 3.22 years at end June 2024.
Margins decline: The bank has shown 11 bps YoY jump in cost of deposits to 5.23%, while yield on advances declined 11 bps YoY to 8.58% in Q1FY2026. Thus, the NIM has fell 21 bps YoY, while eased 14 bps qoq to 3.23% in Q1FY2026.
Branch expansion: The bank has added 8 branches and 198 ATMs in Q1FY2026, taking overall tally to 5909 branches and 5466 ATM`s end June 2025.
Book value of the bank stood at Rs 486.1 per share at end June 2025, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 472.7 per share at end June 2025.
Quarterly Performance
NII growth ease as NIM declines: Bank has recorded 8% increase in the interest earned at Rs 16282.71 crore, while interest expenses increased 12% to Rs 9923.84 crore in Q1FY2026. NII rose 3% to Rs 6358.87 crore in the quarter ended June 2025.
Strong treasury income boost non-interest income: Bank has posted flat core fee income yoy at Rs 790 crore, while the recoveries jumped 42% to Rs 716 crore and forex income zoomed 202% to Rs 181 crore. Treasury income surged 45% to Rs 380 crore and other income galloped 9100% to Rs 372 crore, leading to 28% surge in the overall non-interest income to Rs 2438.60 crore in the quarter ended June 2025.
Expenses ratio rises: The operating expenses of the bank increased 12% to Rs 4027.19 crore, as other expenses moved up 10% to Rs 1414.93 crore, while employee expenses increased 14% to Rs 2612.26 crore in Q1FY2026. Cost to income ratio increased to 45.8% in Q1FY2026 compared with 44.3% in Q1FY2025. The Operating Profit to increase 6% to Rs 4770.28 crore.
Provisions and contingencies decline: The bank has shown -45% decline in provisions to Rs 691 crore. The loan loss provisions declined -57% to Rs 387 crore, while standard asset provisions fell -15% to Rs 306 crore and other provisions dipped -85% to Rs 3 crore. Further, the bank has also written back investment provisions of Rs 5 crore in Q1FY2026,
Effective tax rate rose to 27.1% in Q1FY2026 from 25.9% in Q1FY2025. Net Profit increased 24% YoY to Rs 2972.82 crore during quarter ended June 2025.
Financial Performance FY2025:
Bank has posted 35% increase in net profit to Rs 10918.29 crore in the year ended March 2025 (FY2025). The net interest income increased 8% to Rs 25176.37 crore, while non-interest income moved up 17% to Rs 9223.48 crore, pushing up net total income by 10% to Rs 34399.85 crore in FY2025. The operating expenses increased 8% to Rs 15401.65 crore, while provision and contingencies declined 28% to Rs 4211.27 crore, allowing profit before tax to increase 35% to Rs 14786.93 crore in FY2025. The cost-to-income ratio improved to 44.8% in FY2025 compared to 45.9% in FY2024. An effective tax rate declined to 26.2% in FY2025 compared to 26.4% in FY2024. The net profit has increased 35% to Rs 10918.29 crore in FY2025. '| Indian Bank: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 16282.71 | 15039.23 | 8 | 62002.16 | 55614.78 | 11 |
| Interest Expended | 9923.84 | 8861.14 | 12 | 36825.79 | 32341.49 | 14 |
| Net Interest Income | 6358.87 | 6178.09 | 3 | 25176.37 | 23273.29 | 8 |
| Other Income | 2438.60 | 1905.54 | 28 | 9223.48 | 7866.72 | 17 |
| Net Total Income | 8797.47 | 8083.63 | 9 | 34399.85 | 31140.01 | 10 |
| Operating Expenses | 4027.19 | 3582.04 | 12 | 15401.65 | 14300.46 | 8 |
| Operating Profits | 4770.28 | 4501.59 | 6 | 18998.20 | 16839.55 | 13 |
| Provisions & Contingencies | 691.00 | 1258.38 | -45 | 4211.27 | 5888.41 | -28 |
| Profit Before Tax | 4079.28 | 3243.21 | 26 | 14786.93 | 10951.14 | 35 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 4079.28 | 3243.21 | 26 | 14786.93 | 10951.14 | 35 |
| Provision for tax | 1106.46 | 839.79 | 32 | 3868.64 | 2888.20 | 34 |
| PAT | 2972.82 | 2403.42 | 24 | 10918.29 | 8062.94 | 35 |
| EPS*(Rs) | 88.3 | 71.4 | ' | 81.1 | 59.9 | ' |
| Equity | 1347.0 | 1347.0 | ' | 1347.0 | 1347.0 | ' |
| Adj BV (Rs) | 472.7 | 381.5 | ' | 446.1 | 361.0 | ' |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||