State-owned Indian Bank reported a 10 per cent year-on-year increase in standalone net profit to Rs 3,273 crore for the quarter ended 30 June, driven by robust growth in net interest income (NII), healthy loan expansion and continued improvement in asset quality.
Net interest income (NII)—the difference between interest earned and interest expended—rose 17 per cent to Rs 7,435 crore, compared with Rs 6,359 crore in the year-ago period. Operating profit increased 16.5 per cent to Rs 5,557 crore, while other income grew 8 per cent to Rs 2,633 crore. Total income for the quarter rose to Rs 20,724 crore.
Strong Credit Growth Boosts Performance
Gross advances grew 13.6 per cent year-on-year to Rs 6.37 lakh crore, while deposits increased 13.7 per cent to Rs 8.92 lakh crore, taking the bank's total business to over Rs 15.29 lakh crore.
The bank's net interest margin (NIM) improved sequentially to 3.29 per cent from 3.23 per cent in the preceding quarter, reflecting resilient core lending performance and steady earnings from its loan book.
Asset Quality Strengthens Further
Indian Bank continued to improve its asset quality, with the gross non-performing asset (GNPA) ratio declining to 1.86 per cent from 3.77 per cent a year earlier. The net non-performing asset (NNPA) ratio also improved to 0.19 per cent, compared with 0.39 per cent in the corresponding quarter last year.
Provisions, however, increased 73 per cent year-on-year to Rs 1,196 crore, indicating a more prudent provisioning approach despite the improvement in loan quality.
The lender also maintained a comfortable capital position, with its capital adequacy ratio remaining well above regulatory requirements. The quarterly performance underscores the bank's strong execution across core banking operations, supported by sustained credit growth, stable margins and disciplined risk management. |
