Indian Bank Q2 Results Show 11.5% Rise in Net Profit and Better Asset Quality

Indian Bank reported an 11.5% year-on-year increase in net profit for the second quarter of the financial year, amounting to ₹3,018 crore compared to ₹2,706 crore in the same quarter last year. This steady performance reflects continued operational improvement and disciplined financial management.

The lender’s net interest income (NII)—the difference between interest earned and interest expended—rose 6% year-on-year to ₹6,551 crore, against ₹6,195 crore in the corresponding period a year ago. The growth in NII highlights stable lending activity and effective cost management despite a competitive interest rate environment.

Improvement in Asset Quality

Indian Bank continued to demonstrate improvement in asset quality during the quarter. The gross non-performing assets (NPA) ratio declined to 2.60% from 3.01% in the previous quarter, indicating a healthier loan book. The net NPA ratio also improved marginally to 0.16% from 0.18% sequentially, showcasing prudent risk management and efficient recovery strategies.

The bank’s provisions for the quarter stood at ₹739 crore, compared to ₹691 crore in the previous quarter and ₹1,100 crore in the same period last year. The decline in provisioning requirements points to an improvement in asset quality and reduced stress in the bank’s loan portfolio.

Market Reaction and Share Performance

Following the announcement of the results, the Indian Bank share price moved higher by 2.52% to ₹794.80 during Thursday’s trading session. The stock has shown consistent performance in 2025, recording an approximate 55% rise so far this year.

As of 3:30 p.m. on October 16, the Indian Bank share price stood at ₹774, reflecting a marginal 0.12% decline on the NSE. The bank’s market capitalisation was recorded at ₹1,04,309 crore. During the day, the stock touched a high of ₹805 and a low of ₹474.

The Indian Bank share price currently trades at a price-to-earnings (P/E) ratio of 9.19, supported by a book value of ₹571. The stock offers a dividend yield of 2.06%, while the bank reported a Return on Capital Employed (ROCE) of 6.38% and a Return on Equity (ROE) of 17.1%. The face value of each share stands at ₹10.00. 

Read More:South Indian Bank Share Price Dips as Q2 Interest Income Drops 8.3% YoY

Conclusion

With a steady rise in profitability, consistent improvement in asset quality, and controlled provisioning, Indian Bank continues to maintain financial stability. The focus on strengthening its loan book, improving margins, and maintaining credit discipline could support its financial performance in the upcoming quarters.

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