Indian Bank on Thursday reported an 11% year-on-year growth in its second-quarter net profit at ₹3,018 crore, driven by higher interest income and lower provisioning for bad loans.
Interest income rose 8% YoY to ₹16,590 crore while interest expenses increased 10% to ₹10,039 crore. Net interest income (NII) grew 6% to ₹6,551 crore. The net interest margin remained stable at 3.23% on a sequential basis.
The operating profit edged higher to ₹4,837 crore, compared with ₹4,728 crore in the year-ago period. Provisioning expenses fell 33% to ₹739 crore, providing a boost to profitability. Non-interest income remained largely flat at ₹2,487 crore, weighed down by a 33% decline in bad debt recoveries to ₹489 crore and a dip in fee income.
Domestic advances rose 11.73% YoY to ₹5.74 lakh crore, supported by growth in the retail, agriculture, and MSME (RAM) portfolio. Retail loans recorded the strongest growth at 19%, reaching ₹1.30 lakh crore, while agriculture loans increased 14% to ₹1.46 lakh crore. MSME loans grew 14% to ₹98,956 crore.
Corporate deposits grew at a more modest pace of 5% to ₹1.98 lakh crore.
Total deposits expanded 12.09% YoY to ₹7.77 lakh crore, with low-cost current and savings accounts (CASA) rising 7.23% to ₹2.88 lakh crore. CASA now accounts for 38.87% of total deposits, down from 40.47% a year earlier. The bank’s total business increased 12.34% YoY to ₹13.97 lakh crore as of September 2025.
On the asset quality front, Indian Bank sustained its improvement trend. The gross non-performing assets (NPA) ratio declined to 2.60% from 3.01% in the previous quarter, while the net NPA ratio improved to 0.16% from 0.18% sequentially.
Fresh slippages during the quarter stood at ₹1,132 crore, against total recoveries and upgrades of ₹1,641 crore. The slippage ratio improved to 0.79% from 1.06% in the same quarter last year.
Shares of Indian Bank closed flat at ₹775 on the NSE