R ARIVANANTHAM
CHENNAI, MAY 3
Public sector lender Indian Bank on Saturday reported a 32 per cent jump in net profit to Rs 2,956 crore for the March quarter of 2024-25, helped by a decline in bad loans and a rise in core income.
The Chennai-based lender had earned a net profit of Rs 2,247 crore in the year-ago period.
- Net interest income rIseS 6.2% to ₹6,389 crore, while operating profit grows 17% YoY to ₹5,019 crore
- RAM (Retail, Agriculture, and MSME) advances grows 13% YoY, now contributing 64.2% to total domestic credit
- The board approves raising up to ₹7,000 crore through a mix of equity and bonds during the ongoing financial year
During the quarter, the bank’s total income increased to Rs 18,599 crore from Rs 16,887 crore a year ago, Indian Bank said.
Interest income grew to Rs 15,856 crore from Rs 14,624 crore in the fourth quarter of the previous financial year. Net Interest Income (NII) in the quarter also improved to Rs 6,389 crore from Rs 6,015 crore in the same period a year ago.
Replying to queries, Indian Bank MD and CEO Binod Kumar said that the Indian Bank’s IBU at Gift City, Gandhinagar is performing well. The IBU’s growth rate is 40 per cent and it has achieved the business of over Rs 2 Billion and its performance is better than other overseas branches. Local language Tamil will be introduced in all its customer interface, in which highlights of important programmes will be published in Tamil in future, he added.
On the asset quality front, the bank’s gross Non-Performing Assets (NPAs) moderated to 3.09 per cent of gross advances as compared to 3.95 per cent by the end of March 2024.
Similarly, Net NPAs came down to 0.19 per cent of the net advances over 0.43 per cent at the end of 2024.
Provision Coverage Ratio of the bank rose to 98.10 per cent as of March 31, 2025, from 96.34 per cent at the end of the previous year.
The bank’s capital adequacy ratio rose to 17.94 per cent from 16.44 per cent at the end of FY24.
For the entire financial year 2024-25, the bank reported a 35 per cent increase in profit at Rs 10,918 crore as against Rs 8,063 crore in the previous year.
The bank’s total income during the financial year rose to Rs 71,226 crore as against Rs 63,482 crore a year ago.
NII rose to Rs 25,176 crore from Rs 23,274 crore in the previous year. Net Interest Margin in the year stood at 3.51 per cent for the year ended March 2025.
The bank’s board has recommended a dividend of 16.25 paise per equity share of the face value of Rs 10 each for 2024-25 subject to the approval of the shareholders at the ensuing Annual General Meeting.
The board has also approved raising up to Rs 7,000 crore through a mix of equity and bonds during the ongoing financial year. Of this, the bank has taken approval for raising equity capital aggregating upto Rs 5,000 crore (including premium) through QIP or Rights Issue or in combination.
Besides, it proposes to raise up to Rs 2,000 crore through issuance of Basel III Compliant AT-1 Perpetual Bonds/Tier 2 Bonds in one or more tranches during the current or subsequent financial years based on the requirement, it added.
CEO and MD Binod Kumar said the bank’s digital push has driven significant engagement, with mobile banking users up 16% and credit card users increasing by 25% YoY. Digital channels generated ₹1.67 lakh crore in business during the year.
