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Informist, Thursday, Oct. 16, 2025

 

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--Indian Bank: Domestic CASA ratio 38.87% as on Sept 30 
--Indian Bank deposits INR 7.77 tln as on Sept 30, up 12.09% on year 
--Indian Bank advances INR 6.20 tln as on Sept 30, up 12.65% on year 
--Indian Bank PCR including technical writeoff 98.28% as on Sept 30 
--Indian Bank PCR including technical writeoff 98.28% as on Sept 30 
--Indian Bk Jul-Sept technical write-offs INR 20.04 bln vs INR 13.01 bln 
--Indian Bk Jul-Sept recovery, upgrades INR 8.94 bln vs INR 10.85 bln yr ago 
--Indian Bank Jul-Sept fresh slippages INR 11.32 bln vs INR 13.57 bln yr ago 
--Indian Bank Jul-Sept cost of deposits 5.01% vs 5.14% qtr ago, 5.13% yr ago 
--Indian Bank Jul-Sept domestic NIM 3.34% vs 3.35% qtr ago 
--Indian Bank Jul-Sept NIM 3.23%, unch on qtr 
--Indian Bank Jul-Sept net interest income INR 65.51 bln, up 5.76% on year 
--Indian Bank Apr-Sept total income INR 377.98 bln vs INR 347.14 bln year ago 
--Indian Bank Apr-Sept net profit INR 59.91 bln vs INR 51.10 bln year ago 
--Indian Bank Basel III capital adequacy ratio 17.31% as on Sept 30 
--Indian Bank Jul-Sept NPA provisions INR 3.82 bln vs INR 8.37 bln year ago 
--Indian Bank Jul-Sept provisions INR 7.39 bln vs INR 10.99 bln year ago 
--Indian Bank net NPAs 0.16% as on Sept 30 vs 0.18% qtr ago, 0.27% year ago 
--Indian Bank gross NPAs 2.60% as on Sept 30 vs 3.01% qtr ago, 3.48% yr ago 
--Indian Bank Jul-Sept total income INR 190.77 bln vs INR 177.70 bln year ago 
--Indian Bank Jul-Sept net profit INR 30.18 bln vs INR 27.06 bln year ago 
--Analysts saw Indian Bank Jul-Sept net profit at INR 28.15 bln 
--Indian Bank Jul-Sept net profit INR 30.18 bln

 

By Priyasmita Dutta and Pratiksha

 

NEW DELHI – Indian Bank's net profit exhibited healthy performance in the September quarter, buoyed by the biggest ever fall in provisions, data available with Informist showed. Beating Street estimates, the public sector bank reported a nearly 12% on-year rise in its profit, with provisions falling for the eighth consecutive quarter. A steady rise in total income also supported the bottom line. 

 

Indian Bank's net profit in Jul-Sept was INR 30.18 billion, higher than analysts' estimate of INR 28.15 billion. Sequentially, the net profit was up 1.5%. Indian Bank's provisions were down 33% on year to INR 7.39 billion in the September quarter, with provisions for bad loans more than halving during the quarter. The bank set aside INR 3.82 billion as provisions for bad loans, as against INR 8.37 billion set aside in the corresponding quarter a year ago. 

 

The bank's total income during the quarter was up 7.4% on year to INR 190.77 billion. Shares of the bank improved on the healthy financial results, and traded at INR 795.35 on the National Stock Exchange, up 2.6% from the previous close, at 1319 IST.

 

The Chennai-based bank's asset quality improved both sequentially and annually, which supported the bottom line. The gross non-performing asset ratio declined to 2.60% as of Sept. 30 from 3.01% at the end of June and 3.48% as of Sept. 30, 2024. The net non-performing asset ratio fell to 0.16% from 0.18% as of Jun. 30 and 0.27% at the end of September 2024. Its provision coverage ratio was 98.28% as of Sept. 30, against 98.20% as of Jun. 30.  

 

The bank recognised fresh slippages worth INR 11.32 billion in Jul-Sept, down from INR 13.57 billion a year ago. The lender's cash recoveries and upgrades were at INR 8.94 billion in Jul-Sept, also down from INR 10.85 billion a year ago. Technical write-offs in the reported quarter were at INR 20.04 billion compared to INR 13.01 billion a year ago. The bank's credit cost decreased to 0.26% in the September quarter from 0.28% in the previous quarter and 0.65% a year ago.

 

The bank's net interest income--the difference between interest earned and expended--for the quarter ended September rose 5.8% on year to INR 65.51 billion. Net interest income was seen rising 2.4% on year to INR 63.45 billion in the quarter, according to the average of estimates by four brokerages.

 

The lender's total expenses during the quarter under review rose over 9% on year to INR 142.40 billion. Of this, interest expenses increased 9.7% on year to INR 100.39 billion. 

 

Strong growth in loans also boosted the public-sector bank's bottom line. The bank reported 12.7% on-year growth in gross advances to INR 6.20 trillion as of Sept. 30. This was better than the banking industry's average growth in credit of 10.4% as of Sept. 19. 

 

Within domestic loans, retail loans grew at their fastest pace, posting a year-on-year increase of 18.6% to INR 1.30 trillion. Agriculture advances grew 14% on year to INR 1.46 trillion, and micro, small and medium enterprises loans were up just over 14% on year at INR 989.56 billion. Corporate loans rose only 5% on year to INR 1.98 trillion.

 

Indian Bank's deposits grew 12.1% on year to INR 7.77 trillion as of Sept. 30. Current account saving account deposits rose 7.2% on year to INR 2.89 trillion in the reporting quarter. The current account savings account ratio, however, edged lower to 38.87% from 38.97% at the end of the previous quarter and 40.47% a year ago. The bank's cost of deposits also fell to 5.01% in Jul-Sept from 5.14% in the June quarter and 5.13% in the same quarter last year.

 

The lender's net interest margin contracted in Jul-Sept, primarily due to the Reserve Bank of India's Monetary Policy Committee cutting the repo rate by 100 bps so far in 2025. The pressure on net interest margin is expected across the banking sector. The bank's domestic net interest margin was 3.34% in the September quarter, down from 3.35% a quarter ago, and 3.49% a year ago. The lender's net interest margin was at 3.23% in the September quarter, unchanged from a quarter ago and down from 3.39% a year ago. 

 

The bank's cost of funds rose to 5.09% from 5.23% a quarter ago and 5.22% a year ago. The Basel-III capital adequacy ratio was at 17.31% as of Sept. 30, up from 16.55% a year ago.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

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