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

Written by: Kusum KumariUpdated on: 25 Jul 2025, 5:18 pm IST
Indian Bank posts ₹2,973 crore profit in Q1 FY26, up 24% YoY. Asset quality, digital usage, and RAM loans improve. EPS rises to ₹88.28; GNPA drops to 3.01%.
Indian Bank Q1 FY26 Earnings Results: Net Profit Rises 24% YoY to ₹2,973 Crore
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

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.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jul 25, 2025, 11:40 AM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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