Public sector lender Indian Bank opened the June quarter earnings season from lenders with a robust set of numbers, unlike analysts forecast, logging in a healthy 10.1% jump in net income at Rs 3,273 crore, buoyed by a steep improvement in margins and the resultant spike in net interest income.
The Chennai-based lender said its total business increased 13.66% to Rs15.3 trillion reflecting broad-based momentum. Of this gross advances increased 13.89% to Rs8.4 trillion while deposits rose 13.47% to Rs6.8 trillion, anchored by a robust Casa share of 39.73%. The bank also said its asset quality remained resilient, with the gross NPAs coming down to 1.86% from 3.01% in June 2025, while the net NPA coming down by 3 bps to 0.15%. Better asset quality saw the slippage ratio coming down to 0.77 from 0.94 and the credit cost improving by 5 bps to 0.23% from 0.28%.
The bank on Friday said its net profit rose 10.09% year-on-year to Rs3,273 crore in the June quarter from Rs2,973 crore in the year-ago period, driven by a healthy 16.92% jump in the key net interest income at `7,435 crore from `6,359 crore, propped by a healthy growth in net interest margin which rose to 3.41% from 3.35% in June 2025.
This also helped the bank to report better cost to income ratio at 44.80, down 98 bps, and lower cost of deposits which came down by 34 bps to 4.80% as its cost of funds came down by 40 bps to 4.83%, helping it post better yield on investments which rose 6.96%, the bank said in a statement.
The bank said its gross advances increased 13.89% to Rs6,84,623 crore led by 14.8% jump in RAM (retail, agriculture & MSME) advances to Rs 4,16,992 crore. RAM contribution to gross domestic advances increased to 66%. On the other hand, total deposits increased 13.47% to `8,44,578 crore from Rs7,44,289 crore. Of this the low cost Casa increased to 39.73% from 38.97%, helping the credit to deposit ratio to improve to 81.06 from 80.77.
