MUMBAI: The Chennai-based Indian Bank has reported a robust set of numbers with a standalone net income of Rs 2972.82 crore for the quarter to June, registering a growth of 23.7% on-year boosted by higher interest income and improved asset quality.
The state-run bank told reporters in an earnings call that its key net interest income grew 2.9% to Rs 6,359 crore while interest income rose 8.2% to Rs 16,282.71 crore, taking the total income to Rs 18,721 crore, up 10.5% from Rs 16,945 crore in the same period last fiscal.
Asset quality remained stable with gross NPA ratio improving by 76 bps to 3.01 from 3.77. The amount of net non-performing assets stood at Rs 1035.56, more than halving from Rs 2,026.59 crore. Similarly, the NPA ratio also improved by 21 bps to 0.18 from 0.39 in June 2024, Binod Kumar, the managing director and chief executive of the bank, told reporters.
The provision coverage ratio improved by 154 bps to 98.20 in June 2025 from 96.66 in June 2024, he said, adding the slippage ratio was contained at 0.94 compared to 1.50 a year ago.
The return on assets rose 14 bps to 1.34% from 1.20% last year while the return on equity increased 50 bps to 20.26% from 19.76%.
During the reporting quarter, the gross advances increased 11.50% to Rs 60,114.7 crore. Of this, the key RAM (retail, agriculture & MSME) advances grew 15.93% to Rs 36,322.1 crore and the RAM contribution to gross advances increased to 65.34. Retail, agri, and MSME advances grew 16.56%, 16.40%, and 14.45% respectively. Home loans grew 10.65%.
Total deposits increased 9.26% or by Rs 74,428.9 crore during the quarter, compared to Rs 68,118.3 crore last year, of which the low-cost Casa ratio stood at 38.97.
Kumar said the management is confident that the bank will achieve a credit growth of 10-12% this fiscal.
However, on a consolidated level, net declined by 8% to Rs 2218.51 crore in the quarter from Rs 2417.30 crore in the year-ago quarter on poor show by its subsidiaries.
Indian Bank's share price closed almost 3% at Rs 642.20. The counter is trading very close to its 52-week high having risen sharply from the 52-week lows of Rs 474.05 in January 2025. The share has gained more than 28% in the past six months.