Indian Bank reports strong profit growth, improved asset quality

Indian Bank's standalone net profit for the second quarter of FY 2025-26 rose by 11.49% year-on-year to ₹3018 Cr, with half-year net profit increasing by 17.24% year-on-year to ₹5991 Cr. Operating profit for the quarter improved by 2.31% year-on-year to ₹4837 Cr, reaching ₹9607 Cr for the half year, up 4.08%. Net Interest Income for the quarter increased by 5.76% year-on-year to ₹6551 Cr, and for the half year, it grew by 4.35% to ₹12910 Cr.

The bank demonstrated significant improvements in asset quality, with Gross Non-Performing Assets (GNPA) decreasing by 88 basis points year-on-year to 2.60% (from 3.48% in September 2024) and Net Non-Performing Assets (NNPA) reduced by 11 basis points year-on-year to 0.16% (from 0.27% in September 2024). The Provision Coverage Ratio (PCR, including TWO) also improved by 68 basis points year-on-year to 98.28% (from 97.60% in September 2024).

The Capital Adequacy Ratio stood at 17.31%, with CET-I at 14.80% and Tier I Capital at 15.27%. Domestic CASA ratio was 38.87%, and total deposits increased by 12.09% year-on-year to ₹776946 Cr. Gross advances grew by 12.65% year-on-year to ₹620324 Cr, with RAM (Retail, Agriculture & MSME) advances growing by 15.57%.