Chennai: Indian Bank has announced a robust financial performance for the quarter and half year ended September 30, 2025. The bank’s net profit rose 17.24% year-on-year (YoY) to ₹5,991 crore in H1FY26 compared to ₹5,110 crore in H1FY25, driven by healthy growth in advances, improved asset quality, and steady net interest income.
Quarterly Performance (Q2FY26 vs Q2FY25)
Indian Bank’s net profit increased 11.49% YoY to ₹3,018 crore in the September 2025 quarter, compared to ₹2,707 crore in the same period last year.
Operating profit rose 2.31% to ₹4,837 crore, while net interest income (NII) grew by 5.76% to ₹6,551 crore.
Key profitability ratios remained healthy, with Return on Assets (RoA) at 1.32% and Return on Equity (RoE) at 19.58%. Yield on Advances stood at 8.40%, while the cost of deposits improved by 12 bps to 5.01%.
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Strong Growth in Advances and Deposits
Gross advances increased 12.65% YoY to ₹6,20,324 crore. RAM (Retail, Agriculture & MSME) advances grew 15.57% YoY to ₹3,75,660 crore, contributing 65.50% to gross domestic advances.
Priority sector lending stood at 42.51% of ANBC, above the regulatory requirement of 40%.
On the liability side, total deposits grew 12.09% YoY to ₹7,76,946 crore. CASA deposits saw steady growth with the domestic CASA ratio at 38.87%. The credit-deposit (CD) ratio was 79.84% as of September 30, 2025.
Asset Quality Shows Significant Improvement
Asset quality indicators improved sharply during the quarter. Gross NPA declined by 88 bps YoY to 2.60%, and Net NPA dropped to 0.16% from 0.27% a year ago.
The Provision Coverage Ratio (PCR), including technical write-offs, improved to 98.28%. The slippage ratio was contained at 0.79%, compared to 1.06% in September 2024.
Quarter-on-Quarter Highlights (Sep’25 vs Jun’25)
- Net profit increased 1.51% QoQ to ₹3,018 crore.
- Fee-based income grew 5% QoQ to ₹830 crore.
- Yield on investments improved by 7 bps to 7.03%.
- Domestic Net Interest Margin (NIM) stood at 3.34%.
- GNPA fell to 2.60% from 3.01% in June 2025.
Half-Yearly Performance (H1FY26 vs H1FY25)
For the first half of FY26, operating profit increased 4.08% YoY to ₹9,607 crore, and net interest income rose 4.35% YoY to ₹12,910 crore.
NIM (domestic) was at 3.35%, RoA improved to 1.33%, and RoE stood at 19.93%. Credit cost improved significantly, declining 41 bps to 0.27%.
Capital Adequacy and EPS
Indian Bank remains well-capitalized with a Capital Adequacy Ratio of 17.31%. CET-I stood at 14.80% and Tier I Capital at 15.27%.
Earnings Per Share (EPS) rose to ₹89.63 in September 2025, up from ₹80.37 in September 2024.
Network and Digital Initiatives
Indian Bank operates 5,955 domestic branches, including 3 Digital Banking Units (DBUs), along with 3 overseas branches and 1 IBU at GIFT City. The bank has 5,565 ATMs & BNAs and a network of 15,598 Business Correspondents.
Digital banking continues to grow rapidly:
- Digital channel business: ₹1,23,585 crore in H1FY26
- Mobile banking users: up 17% YoY to 2.11 crore
- UPI users: up 24% YoY to 2.41 crore
- Net banking users: 1.17 crore
Awards and Recognitions
- Rajbhasha Kirti Award 2025 – Third prize for promoting the official language.
- Cloud Leader – India 2025 Award from VMware India for excellence in cloud innovation.
- Best CFO (Large Cap) at DSIJ’s 2025 CFO Awards.
Management Outlook
Indian Bank emphasized its focus on agility, innovation, and customer trust. The bank aims to strengthen its foundation for long-term growth by expanding access to underserved segments, enhancing digital capabilities, and maintaining strong asset quality.
“Our performance reflects a balanced growth strategy, improved operational efficiency, and disciplined risk management,” the management said in a statement.
About Indian Bank
Indian Bank, a leading public sector bank headquartered in Chennai, operates a vast network of branches and digital platforms serving millions of customers. The bank continues to focus on financial inclusion, digital transformation, and customer-centric services while playing a vital role in India’s banking growth story.
