R ARIVANANTHAM
CHENNAI, JAN 22
Public sector behemoth Indian Bank reported a resilient and well-balanced performance for the quarter and nine months ended December 31, 2025, underscoring steady profitability, strong balance-sheet growth and accelerating digital transformation—despite a dynamic operating environment.
For Q3FY26, the Bank’s net profit rose 7.33% year-on-year to ₹3,061 crore, compared to ₹2,852 crore in the corresponding quarter last year. Operating profit improved by 5.79% YoY to ₹5,024 crore, while Net Interest Income (NII) grew 7.50% YoY to ₹6,896 crore, reflecting sustained momentum in core banking operations. Fee-based income also recorded a healthy 7.20% YoY growth to ₹998 crore.
- Profits with Purpose: Net profit rises 7.33% YoY as operational strength deepens
- Growth Engines Fire Together: RAM advances, deposits and margins show healthy momentum
- Asset Quality at Its Best: GNPA and NNPA hit multi-year lows with robust capital buffers
- Digital at the Core: Technology-led initiatives drive scale, efficiency and customer reach
- Recognition Follows Results: National awards underline leadership and innovation
The Bank continued to improve efficiency, with the cost of deposits declining by 25 bps to 4.93%, while maintaining strong profitability metrics—Return on Equity (RoE) at 19.11% and Return on Assets (RoA) at 1.30% for the quarter.
MD & CEO Binod Kumar, commenting on the performance, said, “Our Q3 results reflect the strength of Indian Bank’s fundamentals—disciplined growth, prudent risk management and an unwavering focus on customers. We remain committed to building a future-ready bank by combining strong credit growth with technology-led efficiency and superior asset quality.”
Credit Growth and RAM Focus Drive Momentum
Gross advances rose 14.24% YoY to ₹6,38,848 crore, powered by robust growth in Retail, Agriculture and MSME (RAM) advances, which increased 16.65% YoY to ₹3,90,459 crore. RAM advances accounted for 66.06% of gross domestic advances, highlighting the Bank’s strategic focus on granular, diversified lending. Retail, Agriculture and MSME segments grew by 18.54%, 15.14% and 16.41% YoY respectively, with home loans (including mortgage) rising 14.20% YoY.
Total deposits expanded 12.62% YoY to ₹7,90,923 crore, led by strong traction in CASA deposits, with the domestic CASA ratio at 39.08%. The Credit-Deposit ratio stood at a comfortable 80.77%, supporting sustainable growth.
Asset Quality Strengthens Further
Indian Bank continued to strengthen its balance sheet, with Gross NPAs declining sharply to 2.23% from 3.26% a year ago, while Net NPAs improved to 0.15%. The Provision Coverage Ratio (including TWO) stood at an impressive 98.28%, reflecting strong buffers. Slippages reduced to 0.69%, and credit cost eased to 0.21%, underscoring improved portfolio quality.
Capital adequacy remained robust at 16.58%, with CET-I at 14.54%, providing ample headroom for future growth.
Binod Kumar added, “Improvement in asset quality and capital strength gives us confidence to support India’s growth aspirations. Our emphasis remains on responsible lending, early risk recognition and maintaining one of the strongest coverage ratios in the industry.”
Nine-Month Performance Shows Sustained Trajectory
For the nine months ended December 2025, net profit surged 13.69% YoY to ₹9,053 crore, while operating profit rose 4.66% YoY to ₹14,630 crore. NII increased 5.42% YoY to ₹19,805 crore, with domestic NIM at 3.37%. RoA improved to 1.32%, and RoE stood at 19.66%, reinforcing the Bank’s consistent earnings trajectory.
Digital Push and Network Expansion
Digital banking continued to be a key growth lever. During 9MFY26, the Bank generated ₹1.98 lakh crore of business through digital channels and launched 147 digital journeys, utilities and processes. Mobile banking users grew 21% YoY to 2.25 crore, while UPI users rose to 2.52 crore. Debit card and POS users increased by 7% and 15% YoY respectively.
Indian Bank’s physical network remains extensive, with 5,965 domestic branches, 3 overseas branches, 1 IBU at GIFT City, 5,624 ATMs/BNAs and 16,247 Business Correspondents, ensuring deep nationwide reach.
Awards and Recognition
The Bank’s performance and innovation received widespread recognition, including SKOCH Golden Award for “IB SAATHI”, Red Hat APAC Innovation Award 2025, VMware India Cloud Leader Award 2025, and multiple honours at national banking forums. MD & CEO Binod Kumar was also conferred “CEO of the Year” at the Tamil Nadu Business Leader of the Year Awards 2025.
Summing up the road ahead, Binod Kumar said, “With strong fundamentals, growing digital capabilities and a committed workforce, Indian Bank is well positioned to deliver sustainable value to all stakeholders while staying aligned with national development priority.
