NE BUSINESS BUREAU
CHENNAI, JAN 29
Public sector lender Indian Bank on Wednesday reported 35% rise in net profit for the third quarter ended December 31, 2024 to ₹2, 852 crore, compared with ₹2,119 crore in the year-earlier period. Operating profit increased by 16 per cent to ₹4,749 crore from ₹4,097 crore, supported by a 10 per cent rise in net interest income, which reached ₹6,415 crore from ₹5,815 crore in Q3FY24.
- Operating profit rises 16% to ₹4,749 crore
- Net Interest Income increases 10% year on year to ₹6,415 crore
- Domestic advances increases by 9.7 per cent to ₹5,20,224 crore
The net interest income (NII) during the quarter under review came in at ₹6,414.72 crore, up 10.32% from ₹5,814.19 crore posted in Q3 FY24 and 3.55% as against ₹6,194.22 crore posted in the preceding quarter of current fiscal.
Commenting on the results, Binod Kumar, MD & CEO of Indian Bank, said, “Indian Bank has consistently delivered strong financial performance, and Q3 was no exception. Our total business has crossed ₹12.5 lakh crore. Despite an industry-wide decline in CASA percentage, we have maintained a strong 40 per cent ratio. The credit-deposit ratio stands at a robust 79.63 per cent, and our asset quality remains among the best in the industry. Across key metrics, we have seen year-on-year and quarter-on-quarter improvements.”
Provisions (excluding taxes) declined by 21.5 per cent to ₹1,059 crore from ₹1,350 crore.
“We have consistently maintained higher recoveries than fresh slippages,” said Kumar. Fresh slippages were also lower at ₹1,004 crore compared to ₹1,429 crore in Q3FY24.
During the quarter, the bank made provisions of ₹1,059 crore, of which ₹611.23 crore was towards non-performing assets (NPAs) as compared with ₹1,349 crore, of which provisions for NPA was ₹906 crore.
Domestic advances increased by 9.7 per cent to ₹5,20,224 crore in Q3FY25 (from ₹4,74,355 crore in Q3FY24). Retail, agriculture, and MSME (RAM) loans saw strong growth, rising 15.8 per cent (₹1,14,894 crore), 13.5 per cent (₹1,29,840 crore), and 8.2 per cent (₹90,005 crore), respectively. These segments now account for 64.35 per cent of gross domestic loans, up from 62.58 per cent a year ago. Corporate loans grew by 4.5 per cent to ₹1,85,485 crore.
Domestic deposits increased by 6.7 per cent to ₹6,71,577 crore (₹6,29,401 crore). Domestic CASA share saw a slight dip to 40 per cent from 41.14% in Q2FY24. Overall, Indian Bank’s total business grew 8.5 per cent year-on-year, reaching ₹12.61 lakh crore as of December 31, 2024.
