Indian Bank Q1 FY26 Earnings Results: Net Profit Rises 24% YoY to ₹2,973 Crore

Indian Bank posted impressive financial results for Q1 FY26, with a 23.69% year-on-year rise in net profit to ₹2,973 crore, compared to ₹2,403 crore in Q1 FY25. The operating profit also grew by 5.97% YoY to ₹4,770 crore, while net interest income rose 2.93% YoY to ₹6,359 crore.

Indian Bank Q1 FY26 Earnings: Improved Profitability and Asset Quality

• Return on Assets (RoA) improved to 1.34% from 1.20%, and Return on Equity (RoE) climbed to 20.26%.
• Earnings Per Share (EPS) surged 23.69% to ₹88.28.
• Gross NPA (GNPA) declined to 3.01% (down 76 bps YoY and 8 bps QoQ).
• Net NPA (NNPA) dropped to 0.18%, showing robust asset quality.
• Provision Coverage Ratio (PCR) stood at 98.20%, up 154 bps YoY.
• Credit cost improved to 0.28%, a drop of 43 bps YoY and 53 bps QoQ.

Loan and Deposit Growth

• Gross advances grew 11.5% YoY to ₹6,01,147 crore.
• RAM (Retail, Agri, MSME) loans rose 15.93% YoY to ₹3,63,221 crore, contributing over 65% to total advances.
  • Retail: +16.56% YoY
  • Agriculture: +16.40% YoY
  • MSME: +14.45% YoY
  • Home loans: +10.65% YoY
• Total deposits increased 9.26% to ₹7,44,289 crore.
• CASA ratio stood at 38.97%, while the Credit-Deposit ratio was at 80.77%.

Digital Growth and Banking Network

• ₹57,955 crore worth of business done via digital channels in Q1FY26.
• Mobile banking users grew by 15% YoY to 2.02 crore.
• UPI users up 23% (2.29 crore); Net banking users up 6% (1.16 crore).
• Debit and credit card users increased by 4% and 19%, respectively.
• The bank operates 5,909 branches (3 overseas), 5,466 ATMs/BNAs, and 15,080 business correspondents.

Capital Strength

• Capital Adequacy Ratio (CAR) at 17.80%
  • CET-I: 15.26%
  • Tier I Capital: 15.74%

Read More: LIC Ties Up with Govt to Empower Rural Women via Bima Sakhi Yojana.

Indian Bank Share Price Movement

As of July 25, 2025, Indian Bank share price (NSE: INDIANB) is trading at ₹629.85, down 3.42% for the day. The stock opened at ₹652.80 and touched an intraday high and low of ₹654.00 and ₹629.65, respectively. The bank has a market capitalisation of ₹84,850 crore and a price-to-earnings (P/E) ratio of 7.53. It offers a dividend yield of 2.58%, with the latest quarterly dividend amounting to ₹4.06. Over the past 52 weeks, the stock has traded between a low of ₹473.90 and a high of ₹658.50.

Conclusion

Indian Bank delivered a robust Q1 FY26 performance with strong growth in profit, improved asset quality, and continued digital expansion. The steady rise in RAM loans, better credit metrics, and award-winning digital initiatives signal a positive outlook for the bank’s future performance.

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