Indian Bank announced a 11.49% year-over-year increase in net profit for Q2 FY26, reaching ₹3018 Cr. The bank saw improvements in asset quality, with gross NPAs declining to 2.60% and net NPAs dropping to 0.16%. This performance was supported by growth in advances and deposits, along with a focus on retail, agriculture, and MSME (RAM) sectors.
Financial Performance Overview
Indian Bank reported a robust financial performance for the quarter ended September 30, 2025 (Q2 FY26). Key highlights include:
- Net Profit: Increased by 11.49% year-over-year to ₹3018 Cr, compared to ₹2707 Cr in Sep’24.
- Operating Profit: Improved by 2.31% year-over-year to ₹4837 Cr.
- Net Interest Income: Increased by 5.76% year-over-year to ₹6551 Cr.
- Return on Assets (RoA): Stood at 1.32%, with Return on Equity (RoE) at 19.58%.
Key Growth Drivers
Several factors contributed to Indian Bank’s strong performance in Q2 FY26:
- Gross Advances: Increased by 12.65% year-over-year to ₹620324 Cr.
- RAM Advances: (Retail, Agriculture & MSME) grew by 15.57% year-over-year to ₹375660 Cr.
- Total Deposits: Increased by 12.09% year-over-year, reaching ₹776946 Cr.
Asset Quality Improvement
Indian Bank demonstrated significant improvement in asset quality during the quarter:
- GNPA: Decreased by 88 bps year-over-year to 2.60%.
- NNPA: Reduced by 11 bps to 0.16%.
- Provision Coverage Ratio (PCR): Improved by 68 bps year-over-year to 98.28%.
- Slippage Ratio: Contained to 0.79%.
Other Key Metrics
- Capital Adequacy Ratio (CAR): Stood at 17.31%.
- Earnings Per Share (EPS): Increased to ₹89.63.
H1 FY26 Performance
For the half-year ended September 30, 2025 (H1 FY26), Indian Bank reported:
- Net Profit: Up by 17.24% year-over-year to ₹5991 Cr.
- Operating Profit: Grew by 4.08% year-over-year to ₹9607 Cr.
- Net Interest Income: Increased by 4.35% year-over-year to ₹12910 Cr.
Strategic Focus
Indian Bank’s strategy focuses on agility, transparency, and delivering personalized experiences. The bank is investing in innovation and expanding access to underserved segments to strengthen its foundation for long-term success.
Source: BSE