Indian Bank Reports Strong Q3 & 9M FY26 Performance; Net Profit Rises 13.69% YoY
Global business crosses ₹14.30 lakh crore; asset quality and profitability improve
Chennai: Indian Bank reported a robust financial performance for the quarter and nine months ended 31 December 2025, supported by healthy credit growth, improved margins and sustained asset quality.
The Bank’s global business stood at ₹14.30 lakh crore, registering a 13.34% year-on-year (YoY) growth. Net profit for the nine-month period rose 13.69% YoY to ₹9,053 crore, while Return on Equity (RoE) stood strong at 19.66%. Asset quality continued to improve, with Net NPA declining to 0.15%, down 6 basis points YoY.
Quarter ended December 2025 (YoY performance)
Indian Bank’s net profit for the quarter increased by 7.33% YoY to ₹3,061 crore, compared with ₹2,852 crore in the corresponding quarter last year. Operating profit improved by 5.79% YoY to ₹5,024 crore, while Net Interest Income (NII) grew 7.50% YoY to ₹6,896 crore.
Fee-based income rose 7.20% YoY to ₹998 crore. The cost of deposits declined by 25 bps to 4.93%, reflecting improved funding efficiency.
Profitability ratios remained healthy, with RoE at 19.11% and Return on Assets (RoA) at 1.30%. Yield on Advances stood at 8.31%, while Yield on Investments was 6.95%. The Cost-to-Income ratio was contained at 46.90%.
Business growth and asset quality
Indian Bank’s gross advances grew 14.24% YoY to ₹6,38,848 crore, led by strong momentum in the Retail, Agriculture and MSME (RAM) segments, which increased 16.65% YoY to ₹3,90,459 crore. RAM advances accounted for 66.06% of gross domestic advances, with Retail, Agriculture and MSME growing 18.54%, 15.14% and 16.41% YoY, respectively. Home loans (including mortgage) grew 14.20% YoY.
Priority sector advances stood at ₹2,15,127 crore, constituting 43.75% of ANBC, well above the regulatory requirement of 40%.
Total deposits increased 12.62% YoY to ₹7,90,923 crore, driven by Current deposits growth of 19.13% and Savings deposits growth of 8.45%. The domestic CASA ratio stood at 39.08%, while the Credit–Deposit ratio was 80.77%.
Asset quality strengthened further, with Gross NPA declining by 103 bps YoY to 2.23% and Net NPA improving to 0.15%. Provision Coverage Ratio (including TWO) improved to 98.28%, while the slippage ratio reduced to 0.69%.
The Capital Adequacy Ratio improved to 16.58%, with CET-I at 14.54%. Earnings per share (EPS) increased to ₹90.92, compared with ₹84.70 a year ago.
Quarter ended December 2025 (QoQ performance)
On a sequential basis, Indian Bank’s net profit increased 1.42% to ₹3,061 crore. Domestic NIM improved by 6 bps to 3.40%, while GNPA declined by 37 bps to 2.23%. The slippage ratio reduced to 0.69%, and credit cost declined to 0.21%.
Nine months ended December 2025
For the nine-month period, Indian Bank’s operating profit rose 4.66% YoY to ₹14,630 crore, while NII grew 5.42% YoY to ₹19,805 crore. Domestic NIM stood at 3.37%, and the cost of deposits declined by 10 bps to 5.02%. RoA improved to 1.32%, with the Cost-to-Income ratio at 46.40%.
