Indian Bank profit rises 11% to Rs 3,108 cr in Q2, asset quality improves
State-run lender reports higher income and strong deposit growth
 "Indian Bank profit rises 11% to Rs 3,108 cr in Q2, asset quality improves")
State-run Indian Bank on Thursday reported a net profit of Rs 3,107.9 crore in the second quarter of FY26 (Q2 FY26), up 11 per cent from Rs 2,799.70 crore the previous year.
The bank reported a total income of Rs 19,271.09 crore: a 7 per cent increase from Rs 17971.22 crore in Q2 FY25. Operating profit stood at Rs 4,837 crore in Q2 FY26, growing by 2.31 from Rs 4,728 crore in the same period previous year.
Net interest income was Rs 6,551 crore in Q2 FY26, up 5.76 per cent from Rs 6,194 crore in Q2 FY25. Gross non-performing assets (NPA) dipped by 88 basis points (bps) to 2.6 per cent in September 2025, compared to 3.48 per cent the same month the previous year. Net NPA reduced by 11 bps to 0.16 per cent from 0.27 per cent in Q2 FY25, said Binod Kumar, managing director and chief executive officer of Indian Bank.
Provision coverage ratio improved by 68 bps to 98.28 per cent, compared to 97.6 per cent in Q2 FY25. Slippage ratio was 0.79 per cent compared to 1.06 per cent in September 2024. Capital adequacy ratio stood at 17.31 per cent in Q2 FY26.
Total deposits reached Rs 776,946 crore, increasing by 12.09 per cent from Rs 693,115 crore in September 2024. Current, savings, and CASA deposits grew by 11.40 per cent, 6.59 per cent, and 7.23 per cent, respectively.
Indian Bank’s return on assets stood at 1.32 per cent and return on equity at 19.58 per cent in September 2025. Yield on advances stood at 8.40 per cent. Cost of deposit improved by 12 bps to 5.01 per cent from 5.13 per cent last year. Gross advances were at Rs 620,324 crore in September 2025, up 12.65 per cent from Rs 550,644 crore the same month the previous year.