R ARIVANANTHAM
CHENNAI, OCT 17
Public sector lender Indian Bank on Thursday reported a robust 11.53 per cent rise in net profit at ₹3,018 crore for the second quarter ended September 30, 2025, compared with ₹2,706 crore in the corresponding period last fiscal. The growth came on the back of improved asset quality, higher net interest income, and strong performance in retail, agriculture, and MSME segments.
- Strong Growth Momentum Driven by Robust Retail, Agri & MSME Lending; GNPA Improves to 2.60%
- MD Binod Kumar: “Our focus on digital transformation and prudent lending continues to strengthen our growth trajectory.”
Interest income rose to ₹11,964 crore during the quarter, up from ₹11,125 crore a year ago, while provisioning against bad loans was reduced to ₹739 crore, compared to ₹1,099 crore in Q2 FY25.
Financial Performance Snapshot
- Operating Profit: ₹4,837 crore, up 2.31% YoY
- Net Interest Income (NII): ₹6,551 crore, up 5.76% YoY
- Gross Advances: ₹6.20 lakh crore, up 12.65% YoY
- RAM (Retail, Agri & MSME) Advances: ₹3.76 lakh crore, contributing 65.5% of total advances
- Deposits: ₹7.77 lakh crore, up 12.09% YoY
- Domestic CASA Ratio: 38.87%
- Return on Assets (RoA): 1.32%; Return on Equity (RoE): 19.58%
- Gross NPA: 2.60%, improved from 3.48% YoY
- Net NPA: 0.16%, down from 0.27% YoY
- Provision Coverage Ratio: 98.28%
- Capital Adequacy Ratio: 17.31%; CET-I at 14.80%
MD & CEO Speaks
Commenting on the results, Binod Kumar, Managing Director & CEO, Indian Bank, said: “Our consistent performance reflects the strength of our core banking operations and our focus on quality growth. The improvement in asset quality and margins demonstrates our prudent risk management and operational efficiency.”
He further added, “Indian Bank continues to focus on digital transformation, customer-centric innovation, and inclusive growth. Our RAM portfolio remains a key driver of profitability and resilience, and we are committed to leveraging technology to expand access and enhance customer experience.”
Digital & Operational Excellence
Indian Bank has continued to strengthen its digital presence, with business worth ₹1.23 lakh crore generated through digital channels in the first half of FY26. The number of mobile banking users grew 17% YoY to 2.11 crore, while UPI users rose 24% YoY to 2.41 crore.
The bank operates 5,955 branches, including 3 in overseas locations and one at GIFT City, supported by 5,565 ATMs/BNAs and 15,598 Business Correspondents.
Awards & Recognition
Indian Bank’s efforts were acknowledged through multiple accolades during the year — including the Rajbhasha Kirti Award 2025 (3rd Prize) for promoting the official language and the Cloud Leader–India 2025 Award from VMware for leadership in cloud technology. The Bank’s CFO was also recognised as the Best CFO (Large Cap) at DSIJ’s 2025 CFO Awards.
Looking Ahead
Indian Bank reiterated its focus on strengthening its digital backbone, enhancing financial inclusion, and maintaining operational excellence.
“Our goal is to stay agile in a dynamic environment, build trust through transparency, and deliver personalised experiences,” MD & CEO Binod Kumar said. “We remain committed to creating sustainable value for all stakeholders.”
