INDIAN BANK Q1 PROFIT RISES 10 PC TO RS 3,273 CR DRIVEN BY CORE INCOME

New Delhi, Jul 10 (PTI) State-owned Indian Bank on Friday posted a 10 per cent rise in net profit to Rs 3,273 crore in the first quarter of the current financial year, aided by an improvement in core income and a decline in bad loans.

The Chennai-based lender had earned a net profit of Rs 2,973 crore in the same quarter of the previous fiscal.

The lender’s total income increased to Rs 20,724 crore during the June quarter of 2026-27 from Rs 18,721 crore in the same period of FY26, Indian Bank said in a regulatory filing.

Interest earned by the bank also improved to Rs 18,090 crore, compared to Rs 16,283 crore in the year-ago period.

Net Interest Income (NII) increased by 17 per cent to Rs 7,435 crore from Rs 6,359 crore in the June quarter of FY26, it said.

Commenting on quarterly numbers, Indian Bank MD and CEO Binod Kumar said domestic Net Interest Margin (NIM) improved to 3.41 per cent during the quarter from 3.35 per cent in June 2025.

At the same time, Return on Assets (ROA) improved to 1.34 per cent for June 2026 against 1.03 per cent in June 2025, he said.

During the period under review, its operating profit increased to Rs 5,557 crore from Rs 4,770 crore in the same quarter a year ago.

The bank’s asset quality showed improvement as gross non-performing assets (NPAs) declined to 1.86 per cent of gross advances at the end of the June quarter from 3.01 per cent a year ago.

Similarly, net NPAs, or bad loans, declined to 0.15 per cent, against 0.18 per cent in the year-ago period.

As a result, provisions for bad loans declined to Rs 376 crore during the first quarter from Rs 387 crore a year ago.

Provision Coverage Ratio (PCR) remained static at 98.2 per cent during the quarter.

The capital adequacy ratio of the bank declined to 17.80 per cent from 17.99 per cent in the same quarter of FY26.

Talking about loan growth, Kumar said, gross advances increased by 14 per cent to Rs 6,84,623 crore from Rs 6,01,147 crore in June 2025.

The bank would continue to maintain this pace of credit growth for the rest of the financial year with a focus on quality assets, according to Kumar.

RAM (Retail, Agriculture & MSME) advances grew by 15 per cent to Rs 4,16,992 crore in June 2026 from Rs 3,63,221 crore in the same period of the preceding fiscal.

RAM contribution to gross domestic advances increased to 66 per cent. Retail, Agri & MSME advances grew by 18.74 per cent, 9.96 per cent and 17.03 per cent respectively. Home loans (including mortgages) grew by 13.36 per cent.

Kumar also said that low-cost current account and savings account (CASA) increased to 39.73 per cent in June 2026 from 38.97 per cent in June 2025 because of various steps taken by the bank. PTI DP SHM

2026-07-10T14:26:48Z