Indian Bank Reports Strong Financial Performance for Q2 and H1 FY26
Chennai: Indian Bank has announced its financial results for the quarter and half year ended September 30, 2025, showcasing robust growth across key metrics. The Bank’s global business reached ₹13.97 lakh crore, registering a 12.34% year-on-year (YoY) increase. Net profit rose by 17.24% YoY to ₹5,991 crore, while Net Non-Performing Assets (NNPA) declined by 11 basis points to 0.16%. Return on Assets (RoA) stood at 1.33%, reflecting improved operational efficiency.
Quarterly Highlights (Q2 FY26 vs Q2 FY25)
For the quarter ended September 2025, Indian Bank reported a net profit of ₹3,018 crore, up 11.49% from ₹2,707 crore in the same quarter last year. Operating profit grew by 2.31% YoY to ₹4,837 crore, while Net Interest Income (NII) increased by 5.76% to ₹6,551 crore. RoA stood at 1.32% and Return on Equity (RoE) at 19.58%. Yield on Advances (YoA) was 8.40%, and the cost of deposits improved by 12 bps to 5.01%.
Gross advances rose by 12.65% YoY to ₹6,20,324 crore. RAM (Retail, Agriculture, and MSME) advances grew by 15.57% to ₹3,75,660 crore, contributing 65.50% to gross domestic advances. Within RAM, retail, agriculture, and MSME segments grew by 18.58%, 13.98%, and 14.10% respectively. Home loans, including mortgages, increased by 12.68% YoY.
Priority sector advances stood at ₹2,06,149 crore, accounting for 42.51% of Adjusted Net Bank Credit (ANBC), surpassing the regulatory requirement of 40%. Total deposits grew by 12.09% YoY to ₹7,76,946 crore. Current, savings, and CASA deposits rose by 11.40%, 6.59%, and 7.23% respectively. The domestic CASA ratio stood at 38.87%, and the Credit-Deposit (CD) ratio was 79.84%.
Asset quality improved significantly, with Gross NPA (GNPA) declining by 88 bps YoY to 2.60% and NNPA reducing to 0.16%. Provision Coverage Ratio (PCR), including technical write-offs, improved to 98.28%. The slippage ratio was contained at 0.79%. Capital Adequacy Ratio stood at 17.31%, with CET-I at 14.80% and Tier I Capital at 15.27%. Earnings Per Share (EPS) increased to ₹89.63 from ₹80.37 YoY.
Sequential Performance (Q2 FY26 vs Q1 FY26)
Compared to the previous quarter, net profit rose by 1.51% from ₹2,973 crore. Fee-based income grew by 5% to ₹830 crore. Yield on Investments (YoI) improved by 7 bps to 7.03%, and Net Interest Margin (NIM) for domestic operations stood at 3.34%. GNPA and NNPA further declined to 2.60% and 0.16% respectively.
Half-Yearly Performance (H1 FY26 vs H1 FY25)
For the half year ended September 2025, net profit surged by 17.24% YoY to ₹5,991 crore. Operating profit increased by 4.08% to ₹9,607 crore, and NII rose by 4.35% to ₹12,910 crore. Domestic NIM stood at 3.35%. RoA improved by 7 bps to 1.33%, while credit cost declined by 41 bps to 0.27%. RoE for the half year stood at 19.93%.
Branch and ATM Network
Indian Bank operates 5,955 domestic branches, including 3 Digital Banking Units (DBUs). Of these, 2,001 are in rural areas, 1,587 in semi-urban, 1,189 in urban, and 1,178 in metro locations. The Bank also has 3 overseas branches and one International Banking Unit (IBU) at GIFT City. The ATM and BNA network comprises 5,565 units, supported by 15,598 Business Correspondents (BCs).
Digital Banking Growth
Digital channels generated business worth ₹1,23,585 crore in H1 FY26. The Bank has launched 132 digital journeys, utilities, and processes to enhance customer experience. Mobile banking users grew by 17% YoY to 2.11 crore. UPI and net banking users increased by 24% and 6% respectively, reaching 2.41 crore and 1.17 crore. Debit and credit card users also rose by 5% each.
Indian Bank’s performance in Q2 and H1 FY26 reflects strong fundamentals, improved asset quality, and continued digital transformation, positioning it well for sustained growth in the coming quarters.
