R ARIVANANTHAM
CHENNAI, JULY 11
Indian Bank has kicked off FY27 on a powerful note, reporting its highest-ever first-quarter performance with a 10.09 per cent year-on-year rise in net profit to ₹3,273 crore, driven by strong credit growth, record-low bad loans, expanding digital adoption and sustained improvements in operating efficiency.
- Net profit climbs 10.09% to ₹3,273 crore as operating profit and Net Interest Income record robust double-digit growth
- Total business surges 13.66% to over ₹15.29 lakh crore; advances and deposits maintain strong growth momentum
- GNPA falls to a historic low of 1.86%, while digital transactions touch 95%, reinforcing technology-led transformation
- Retail, Agriculture & MSME portfolio powers growth as Indian Bank strengthens profitability, efficiency and capital position
The stellar quarterly performance underlines the Chennai-headquartered public sector lender’s successful strategy of balancing profitable growth with prudent risk management, as total business expanded 13.66 per cent year-on-year to ₹15.29 lakh crore.
The Bank’s operating profit rose 16.50 per cent to ₹5,557 crore, while Net Interest Income (NII) registered an impressive 16.92 per cent growth to ₹7,435 crore, reflecting healthy lending momentum and improved margins.
Further strengthening profitability, the Bank’s Domestic Net Interest Margin (NIM) improved to 3.41 per cent, while its Cost-to-Income Ratio declined to 44.80 per cent, highlighting greater operational efficiency.
On the business front, gross advances increased 13.89 per cent to ₹6.85 lakh crore, led by a robust 14.80 per cent growth in the Retail, Agriculture and MSME (RAM) portfolio, which now contributes 66 per cent of domestic advances. Retail advances rose 18.74 per cent, MSME lending grew 17.03 per cent, agriculture advances expanded 9.96 per cent, while home loans registered 13.36 per cent growth.
Deposits maintained a healthy trajectory, rising 13.47 per cent to ₹8.45 lakh crore, supported by an improved CASA ratio of 39.73 per cent, reflecting the Bank’s strong low-cost deposit franchise.
One of the biggest highlights of the quarter was the continued improvement in asset quality. Gross Non-Performing Assets (GNPA) declined sharply to 1.86 per cent from 3.01 per cent a year earlier, while Net NPA remained among the lowest in the industry at 0.15 per cent.
The Bank also reported a Provision Coverage Ratio of 98.22 per cent, lower slippages, improved credit cost and a healthy Capital Adequacy Ratio of 17.58 per cent, providing ample room to support future growth.
Digital transformation continued to gather pace, with 95 per cent of all transactions now being carried out through digital channels. During the quarter alone, the Bank generated ₹67,327 crore of business digitally and launched 158 digital journeys and customer utilities.
Mobile Banking users grew 22 per cent year-on-year to 2.48 crore, while UPI users reached 2.77 crore, reaffirming Indian Bank’s growing digital footprint.
Binod Kumar, Managing Director & CEO, Indian Bank, said:
Today, we announced our Financial Results for FY2026, showcasing strong performance across key business segments. From robust growth in CASA to steady progress across other business areas despite a challenging environment, this year has further strengthened our momentum.
Hear… pic.twitter.com/H0yZvfn6l3— Indian Bank (@MyIndianBank) July 10, 2026
We are pleased to announce our financial results for Q1/FY2026–27, reflecting strong growth across key business parameters. Backed by a robust performance and a clear focus on the future, the Bank continues to build on its growth momentum.
Watch the highlights to learn more.… pic.twitter.com/w679Bt2Ehu— Indian Bank (@MyIndianBank) July 10, 2026
“Our strong first-quarter performance reflects the resilience of our business model, disciplined execution and unwavering customer-centric approach. Sustained growth in advances and deposits, significant improvement in asset quality and expanding digital adoption demonstrate that Indian Bank is well positioned for sustainable long-term growth.”
He added:
“We remain committed to enhancing operational efficiency, accelerating digital transformation and delivering simpler, faster and more delightful banking experiences while creating enduring value for customers, shareholders and all stakeholders.”
Highlighting the Bank’s long-term vision, he said:
“Our focus remains on becoming the preferred financial partner for customers by catering to their complete banking requirements. Guided by prudent portfolio management, technology-led innovation and strong governance, Indian Bank will continue to deliver profitable and sustainable growth while strengthening its leadership among India’s public sector banks.”
Indian Bank’s growing stature has also been recognised through several prestigious honours, including the Financial Express Best PSB Award 2024-25, the Golden Peacock Award for Excellence in Artificial Intelligence 2026, the SKOCH Golden Award, and the Best Data Quality Award from CIBIL, reflecting excellence across technology, governance and customer service.
With a nationwide network of 6,003 branches, 5,676 ATMs/BNAs, over 17,300 Business Correspondents, and a rapidly expanding digital ecosystem, Indian Bank enters the remainder of FY27 with strong capital buffers, improving profitability and renewed momentum for sustained growth.
