Indian Bank has reported 12% growth in net profit at Rs 3018.22 crore for the quarter ended September 2025 (Q2FY2026). The bank has posted 6% growth in net interest income (NII), while the core fee income of the bank declined 7% in Q2FY2026. The Net Interest Margin (NIM) of the bank eased to 3.23% in Q2FY2026 compared to 3.39% in the corresponding quarter of previous year.

On business front, the bank as has posted 12% growth in business with 13% surge in loan book. The asset quality of the bank was stable in Q2FY2026. Bank has substantially improved the credit to deposit ratio to 79.8% at end September 2025 from 79.4% at end September 2024. The CASA ratio of the bank has remained steady on sequential basis at 37.2% at end September 2025, while declined from 38.9% at end September 2024.

Asset quality improves: The bank has exhibited further improvement in the asset quality in Q2FY2026.

The fresh slippages of loans declined to Rs 1156 crore in Q2FY2026 compared with 1375 crore in previous quarter and Rs 1384 crore in the corresponding quarter last year.

The recoveries and upgradations of NPAs was at Rs 894 crore and the write-off of loans was at Rs 2194 crore in Q2FY2026.

The standard restructured loan book of the bank stood at Rs 2941 crore end September 2025.

Provision coverage ratio rose to 98.28% at end September 2025 compared to 98.20% a quarter ago and 97.60% a year ago.

The capital adequacy ratio of the bank stood at 17.3% with Tier I ratio at 15.3% at end September 2025.

The risk weighted assets of the bank has increased 7% YoY to Rs 425114 crore end September 2025,

Asset Quality Indicators: Indian Bank
'	Sep-25	Jun-25	Mar-25	Dec-24	Sep-24	Variation			'
						QoQ	YTD	YoY	'
Gross NPA (Rs Crore)	16134.66	18066.88	18178.86	18208.35	19148.00	-11	-11	-16	'
Net NPA (Rs Crore)	982.98	1035.56	1190.56	1126.86	1445.29	-5	-17	-32	'
% Gross NPA	2.60	3.01	3.09	3.26	3.48	-41	-49	-88	'
% Net NPA	0.16	0.18	0.19	0.21	0.27	-2	-3	-11	'
% PCR	98.28	98.20	98.10	98.09	97.60	8	18	68	'
% CRAR - Basel III	17.31	17.80	17.94	15.92	16.55	-49	-63	76	'
% CRAR - Tier I - Basel III	15.27	15.74	15.85	13.77	14.01	-47	-58	126	'
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 12% YoY to Rs 1397270 crore end September 2025, driven by 13% surge in advances to Rs 620324 crore. Deposits rose 12% to Rs 776946 crore at end September 2025.

CASA deposits ratio steady on sequential basis: The CASA deposits of the bank increased 7% YoY to Rs 288842 crore at end September 2025. The current account deposits increased 11% to Rs 40281 crore, while saving account deposits increased 7% to Rs 248561 crore end September 2025. The CASA ratio declined to 37.2% at end September 2025 compared to 38.9% at end September 2024, while remained steady from 37.2% a quarter ago. The term deposits have increased 15% to Rs 488104 crore end September 2025. Overseas deposits have increased 22% to Rs 35159 crore end September 2025.

Strong loan growth: Advances growth was driven by retail loans rising 19% YoY to Rs 130499 crore at end September 2025, while credit to agriculture increased 14% to Rs 146205 crore and MSME 14% to Rs 98956 crore at end September 2025. The corporate credit rose 5% to Rs 197864 crore end September 2025. The overseas credit has jumped 25% to Rs 46800 crore end September 2025.

Investment book of the bank increased 9% YoY to Rs 234159 crore at end September 2025. The SLR book moved up 12% to Rs 190801 crore, while non SLR book declined 5% to Rs 43358 crore at end September 2025. The AFS book fell 4% to Rs 64894 crore, while HTM book rose 13% to Rs 149548 crore at end September 2025.

Margins flat qoq, ease yoy: The bank has shown -13 bps YoY decline in cost of deposits to 5.09%, while yield on advances dipped 37 bps YoY to 8.40% in Q2FY2026. Thus, the NIM declined 16 bps YoY, while it was flat qoq at 3.23% in Q2FY2026.

Branch expansion: The bank has added 50 branches and 99 ATMs in Q2FY2026, taking overall tally to 5959 branches and 5565 ATM`s end September 2025.

Book value of the bank stood at Rs 505.5 per share at end September 2025, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 492.7 per share at end September 2025.

Quarterly Performance

NII growth improves sequentially: Bank has recorded 8% increase in the interest earned at Rs 16589.94 crore, while interest expenses increased 10% to Rs 10038.98 crore in Q2FY2026. NII improved 6% to Rs 6550.96 crore in the quarter ended September 2025.

Core fee income declines: Bank has posted 7% decline in core fee income to Rs 830 crore, while the recoveries income dipped 33% to Rs 489 crore and the treasury income declined -57% to Rs 144 crore. However, the forex income surged 161% to Rs 149 crore and other income zoomed 9200% to Rs 875 crore, leading to 3% rise in the overall non-interest income to Rs 2486.63 crore in the quarter ended September 2025.

Expenses ratio rises: The operating expenses of the bank increased 8% to Rs 4201.08 crore, as other expenses moved up 9% to Rs 1549.9 crore, while employee expenses increased 8% to Rs 2651.18 crore in Q2FY2026. Cost to income ratio rose to 46.5% in Q2FY2026 compared with 45.1% in Q2FY2025. The Operating Profit increased 2% to Rs 4836.51 crore.

Provisions and contingencies decline: The bank has shown -33% decline in provisions to Rs 738.60 crore. The loan loss provisions declined -54% to Rs 382 crore, while the bank has written back investment provisions of Rs 1 crore. However, the standard asset provisions increased 18% to Rs 300 crore and other provisions jumped 613% to Rs 57 crore.

Effective tax rate rose to 26.3% in Q2FY2026 from 25.4% in Q2FY2025. Net Profit increased 12% YoY to Rs 3018.22 crore during quarter ended September 2025.

Financial Performance H1FY2026:

Bank has posted 17% increase in net profit to Rs 5991.04 crore in the half year ended September 2025 (H1FY2026). The net interest income increased 4% to Rs 12909.83 crore, while non-interest income moved up 14% to Rs 4925.23 crore, pushing up net total income by 7% to Rs 17835.06 crore in H1FY2026. The operating expenses increased 10% to Rs 8228.27 crore, while provision and contingencies dipped 39% to Rs 1429.60 crore, allowing profit before tax to increase 19% to Rs 8177.19 crore in H1FY2026. The cost-to-income ratio increased to 46.1% in H1FY2026 compared to 44.7% in H1FY2025. An effective tax rate rose to 26.7% in H1FY2026 compared to 25.6% in H1FY2025. The net profit has increased 17% to Rs 5991.04 crore in H1FY2026.

Indian Bank: Results
Particulars	2509 (3)	2409 (3)	Var %	2509 (6)	2409 (6)	Var %	2503 (12)	2403 (12)	Var %
Interest Earned	16589.94	15347.58	8	32872.65	30386.81	8	62002.16	55614.78	11
Interest Expended	10038.98	9153.36	10	19962.82	18014.50	11	36825.79	32341.49	14
Net Interest Income	6550.96	6194.22	6	12909.83	12372.31	4	25176.37	23273.29	8
Other Income	2486.63	2422.10	3	4925.23	4327.64	14	9223.48	7866.72	17
Net Total Income	9037.59	8616.32	5	17835.06	16699.95	7	34399.85	31140.01	10
Operating Expenses	4201.08	3887.80	8	8228.27	7469.84	10	15401.65	14300.46	8
Operating Profits	4836.51	4728.52	2	9606.79	9230.11	4	18998.20	16839.55	13
Provisions & Contingencies	738.60	1099.16	-33	1429.60	2357.54	-39	4211.27	5888.41	-28
Profit Before Tax	4097.91	3629.36	13	8177.19	6872.57	19	14786.93	10951.14	35
Provision for tax	1079.69	922.92	17	2186.15	1762.71	24	3868.64	2888.20	34
PAT	3018.22	2706.44	12	5991.04	5109.86	17	10918.29	8062.94	35
EPS*(Rs)	89.6	80.4	'	89.0	75.9	'	81.1	59.9	'
Equity	1347.0	1347.0	'	1347.0	1347.0	'	1347.0	1347.0	'
Adj BV (Rs)	492.7	411.2	'	492.7	411.2	'	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

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