Indian Bank Posts ₹3,273 Crore Net Profit in Q1 FY2026-27; Deposits and Advances Register Double-Digit Growth
Chennai: Public sector lender Indian Bank has reported a net profit of ₹3,273 crore for the quarter ended 30 June 2026, registering a 10.09% year-on-year (YoY) growth compared to the corresponding quarter of the previous financial year.
According to the bank’s financial results announced on Friday, total business increased by 13.66% YoY to ₹15,29,201 crore, reflecting broad-based growth across key business segments.
The bank’s total deposits rose 13.47% YoY to ₹8,44,578 crore, while gross advances increased 13.89% YoY to ₹6,84,623 crore, supported by continued credit growth.
Indian Bank said its digital transactions accounted for 95% of total transactions during the quarter, indicating continued growth in digital banking adoption and customer engagement.
Asset Quality Improves
The bank reported continued improvement in asset quality during the quarter.
- Gross Non-Performing Assets (GNPA) declined to 1.86% from 3.01% a year ago.
- Net Non-Performing Assets (NNPA) reduced to 0.15%, compared with 0.18% in the corresponding quarter last year.
- Provision Coverage Ratio (PCR), excluding Technical Write-Offs (TWO), improved to 98.22%.
- Slippage Ratio declined to 0.77% from 0.94%.
Profitability and Efficiency Strengthen
The bank’s Operating Profit increased 16.50% YoY to ₹5,557 crore, while Net Interest Income (NII) grew 16.92% YoY to ₹4,345 crore.
Key profitability indicators also improved during the quarter:
- Net Interest Margin (NIM): 3.41%
- Cost-to-Income Ratio: Reduced to 44.80%
- Cost of Deposits: Declined to 3.40%
- Cost of Funds: Reduced to 4.83%
- Yield on Investments: Improved to 6.96%
Strong Growth Across Retail, Agriculture and MSME
The bank’s Retail, Agriculture and MSME (RAM) advances grew 14.80% YoY to ₹4,16,992 crore.
Within the RAM portfolio:
- Retail advances grew 6.60%
- Agriculture advances increased 18.74%
- MSME advances rose 17.03%
- Home loans, including mortgages, registered 13.36% YoY growth.
Priority sector advances accounted for 45.36% of Adjusted Net Bank Credit (ANBC), amounting to ₹2,36,720 crore.
Capital Position Remains Strong
Indian Bank reported a Capital Adequacy Ratio (CRAR) of 17.58%, with CET-1 at 16.51% and Tier-I Capital at 16.51%, indicating a strong capital base.
On a sequential basis (June 2026 vs March 2026), the bank also reported growth in net profit, return on assets (RoA), return on equity (RoE), earnings per share (EPS) and book value per share, while asset quality continued to improve.
The financial performance reflects continued growth in lending, improvement in asset quality and sustained profitability during the first quarter of FY2026-27.
