Indian Bank Q1FY26 results: Consolidated profit down 11.4% at ₹ 2,276.37 cr

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State-run Indian Bank has posted an 11.4 per cent dip in consolidated net profit for the first quarter of the financial year 2025-26, amounting to Rs 2,276.37 crore, down from Rs 2,570.40 crore in the same period last fiscal.

 

The bank's total income for the period under review grew by 10 per cent to Rs 18,905.60 crore, up from Rs 17,117.76 crore in Q1 FY25. During this period, the bank's operating expenditure increased by 12 per cent to Rs 14,113 crore. Provision for taxes also rose from Rs 846 crore in June 2024 to Rs 1,116.3 crore in June 2025. The bank also suffered a loss of Rs 766.59 crore during the quarter.

 

Meanwhile, the bank's standalone net profit grew by 24 per cent during the first quarter of the current financial year to Rs 2,973 crore, compared to Rs 2,403 crore in the same period of 2024-25.

 

The Chennai-based lender’s total income also increased to Rs 18,721 crore during the April to June quarter of FY26, up 10.5 per cent from Rs 16,945 crore in the same period in FY25. Interest earned by the bank also increased to Rs 16,283 crore during the April to June quarter, compared to Rs 15,039 crore in the June quarter last year.

 

The bank’s asset quality showed signs of improvement, with gross non-performing assets (NPA) dipping by 76 basis points year-on-year to 3.01 per cent in June 2025, down from 3.77 per cent a year ago. Similarly, its net NPA also reduced by 21 bps to 0.18 per cent in June 2025, from 0.39 per cent in June 2024, said Binod Kumar, managing director and chief executive officer, Indian Bank. Its Provision Coverage Ratio (PCR) improved by 154 bps YoY to 98.20 per cent in June 2025, from 96.66 per cent in June 2024. The slippage ratio was contained at 0.94 per cent, compared to 1.50 per cent during Q1 last year.

 

Its operating profit improved by 5.97 per cent year-on-year to Rs 4,770 crore in June 2025, from Rs 4,502 crore during the same period last year. Net Interest Income also increased by 2.93 per cent to Rs 6,359 crore during the quarter, up from Rs 6,178 crore in June 2024. Its return on assets (RoA) was up by 14 bps to 1.34 per cent from 1.20 per cent last year. Return on equity (RoE) increased by 50 bps to 20.26 per cent from 19.76 per cent.

 

During the quarter under review, the bank’s gross advances increased by 11.50 per cent YoY to Rs 6,011.47 crore, compared to Rs 5,391.23 crore last fiscal. RAM (Retail, Agriculture & MSME) advances grew by 15.93 per cent YoY to Rs 3,632.21 crore, from Rs 3,133.01 crore during the period under review. RAM's contribution to gross domestic advances increased to 65.34 per cent. Retail, Agri, and MSME advances grew by 16.56 per cent, 16.40 per cent, and 14.45 per cent YoY, respectively. Home Loan (including mortgage) grew by 10.65 per cent YoY.

 

Total deposits also increased by 9.26 per cent YoY, reaching Rs 7,442.89 crore during the quarter, compared to Rs 6,811.83 crore last year. The domestic CASA ratio stood at 38.97 per cent as of June 30.