More Stories

Informist, Friday, Jul. 10, 2026

 

Please click here to read all liners published on this story

--Indian Bank Apr-Jun net profit INR 32.73 bln 
--Analysts saw Indian Bank Apr-Jun net profit INR 34.03 bln 
--Indian Bank Apr-Jun net profit INR 32.73 bln vs INR 29.73 bln year ago 
--Indian Bank Apr-Jun total income INR 207.24 bln vs INR 187.21 bln year ago 
--Indian Bank gross NPAs 1.86% on Jun 30 vs 1.98% qtr ago, 3.01% yr ago 
--Indian Bank net NPAs 0.15% on Jun 30 vs unch qtr ago, 0.18% yr ago 
--Indian Bank Basel III capital adequacy ratio 17.58% on Jun 30 
--Indian Bank Apr-Jun provisions INR 11.96 bln vs INR 6.91 bln year ago 
--Indian Bank Apr-Jun NPA provisions INR 3.76 bln vs INR 3.87 bln year ago 
--Indian Bank Apr-Jun domestic NIM 3.41% vs 3.35% year ago 
--Indian Bank Apr-Jun net interest income INR 74.35 bln, up 16.9% on year 
--Indian Bank gross advances INR 6.85 tln on Jun 30, up 13.9% on year 
--Indian Bank total deposits INR 8.45 tln on Jun 30, up 13.5% on year 
--Indian Bank domestic CASA ratio 39.73% on Jun 30 vs 38.97% year ago 
--Indian Bank provision coverage ratio 98.22% on Jun 30 
--Indian Bank Apr-Jun domestic NIM 3.41% vs 3.35% qtr ago 
--Indian Bank Apr-Jun cost of deposits 4.80% vs 4.83% qtr ago 
--Indian Bank Apr-Jun yield on advances 8.09% vs 8.07% qtr ago 
--Indian Bank Apr-Jun credit cost 0.23% vs 0.47% qtr ago 
--Indian Bank Apr-Jun fresh slippages INR 12.50 bln vs INR 13.34 bln yr ago 
--Indian Bk Q1 cash recovery, upgrades INR 9.36 bln vs INR 10.46 bln yr ago 
--Indian Bk Apr-Jun technical write-offs INR 7.49 bln vs INR 2.98 bln yr ago 

 

By Vaishali Tyagi

 

NEW DELHI – A rise in total income helped Indian Bank return to a double-digit profit growth after two consecutive quarters of decline. However, a sharp year-on-year jump in provisions and contingencies weighed on the lender's bottom line. 

 

Indian Bank posted a net profit of INR 32.73 billion in the June quarter, slightly higher than INR 29.73 billion in the corresponding quarter a year ago. The bank's bottom line for the reporting quarter was also lower than analyst expectation of INR 34.03 billion. 

 

The bank's total income grew nearly 11% on year to INR 207.24 billion in the June quarter. On quarterly basis, it grew nearly 4%. Meanwhile, provisions and contingencies rose for the second consecutive quarter to a 23-quarter high, up 73% year-on-year.  

 

Following the June quarter earnings announcement, shares of the Chennai-based bank, which had opened at INR 800 Friday, traded at INR 866.45, up over 9% on National Stock Exchange.  

 

The bank's net interest income--the difference between interest earned and interest expended--rose 17% on year to INR 74.35 billion in the June quarter. On quarter-on-quarter, it grew 5%. Its operating profit grew 17% on year to INR 55.57 billion.

 

Indian Bank's net interest margin expanded to 3.29% in Apr-Jun from 3.23% in the trailing quarter and a year-ago. The bank, which expects its margin to stay between 3.10% and 3.25% in 2026-27 (Apr-Mar), reported domestic net interest margin of 3.41% as of Jun. 30, up from 3.35% a quarter ago and a year ago both.

 

Meanwhile, the bank's provisions for non-performing assets accounted for INR 3.76 billion in the reporting quarter, significantly higher from INR 7.48 billion reported in trailing quarter. It was broadly similar to INR 3.87 billion reported a year ago. The provisions and contigencies were at INR 11.96 billion nearly double from INR 6.91 billion a year ago.

 

Fresh slippages fell to INR 12.50 billion in the quater ended June from INR 13.55 billion in the trailing quarter. Recoveries and upgrades fell to INR 9.36 billion from INR 10.46 billion in the year-ago quarter. The bank's techical write-off were at INR 7.49 billion, significantly higher INR 2.98 billion it reported a year ago. 

 

The lender's net non-performing asset ratio was flat on quarter at 0.15% as of Jun. 30 but improved from 0.18% a year ago. On other hand, asset quality recovered, with the gross non-performing asset ratio falling to 1.86% at the end of June from 1.98% as of Mar. 31 and 3.01% as of Jun. 30, 2025. The lender expects its gross non-performing asset ratio to further improve to 1.50-1.60% in FY27, and sees its net non-performing asset ratio in the range of 0.15-0.20%. Credit cost fell to 0.23% in Apr-Jun from 0.47% in the trailing quarter and 0.28% from a year ago quarter. 

 

Indian Bank's advances grew 13.9% on year to INR 6.85 trillion as of Jun. 30, which primarily included domestic advances worth INR 6.32 trillion, up 13.7% on year. The lender expects the growth in advances to remain stable at 11–13% in FY27. Deposits, which grew 13.5% on year to INR 8.45 trillion, are expected to rise 9–11% in FY27. 

 

 

Indian Bank's domestic current account savings account ratio was 39.73% as of Jun. 30, compared with 38.97% as of Jun. 30, 2025. The lender's cost of funds fell to 4.83% in Apr-Jun from 4.88% in Jan-Mar and 5.23% in Apr-Jun a year ago. The bank reported a capital adequacy ratio of 17.58% as of Jun. 30. 

 

In Apr-Jun, cost of deposits fell to 4.80% from 4.83% in a quarter-ago period, while its yield on advances rose to 8.09% marginally higher from 8.09% from 8.07% in Jan-Mar. 

 

The public sector lender has guided for a return on assets of 1.20-1.30% for FY27, compared with 1.31% in the Apr-Jun quarter, up 3 basis points from quarter and year-ago perid. Its credit-to-deposit ratio stood at 81.06% in the reporting quarter, and the bank expects it to be around 80% in FY27.  End

 

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

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.