Indian Bank Q1 Results: Net Profit Surges 41% to Rs 2403 Cr

Indian Bank

Indian Bank has announced its Q1 FY25 results, showcasing robust financial performance with a net profit surge of 41 per cent year-over-year (YoY), reaching ₹2403 crore in June 2024 from ₹1709 crore in June 2023. 

The bank’s global business saw an 11 per cent YoY increase, totaling ₹12.20 lakh crore. Operating profit improved by 9 per cent YoY to ₹4502 crore, while net interest income rose by 8 per cent YoY to ₹6178 crore. Fee-based income experienced a notable growth of 17 per cent YoY, amounting to ₹788 crore. 

The bank’s return on assets (RoA) increased by 25 basis points to 1.20 per cent, and return on equity (RoE) grew by 188 basis points to 19.76 per cent. Yield on advances (YoA) and yield on investments (YoI) also saw improvements, with YoA up by 16 basis points to 8.69 per cent and YoI up by 43 basis points to 7.15 .

Gross advances increased by 12 per cent YoY to ₹539123 crore, while RAM (Retail, Agriculture, and MSME) advances grew by 13 per cent YoY to ₹313301 crore. Priority sector advances stood at 43 per cent of adjusted net bank credit (ANBC), exceeding the regulatory requirement of 40 per cent. Total deposits rose by 10 per cent YoY, reaching ₹681183 crore, with domestic CASA ratio at 41 per cent. 

The bank’s asset quality improved, with gross non-performing assets (GNPA) decreasing by 170 basis points YoY to 3.77 per cent and net non-performing assets (NNPA) reducing by 31 basis points to 0.39 per cent. The provision coverage ratio (PCR), including technical write-offs, improved to 96.66 per cent.

Comparing Q1 FY25 with Q4 FY24, Indian Bank‘s capital adequacy ratio improved by 69 basis points to 16.47 per cent, with CET-I and Tier I capital showing significant improvements. Net profit increased by 7 per cent quarter-over-quarter (QoQ) to ₹2403 crore, operating profit by 5 per cent QoQ to ₹4502 crore, and net interest income by 3 per cent QoQ to ₹6178 crore. 

The return on assets (RoA) improved to 1.20 per cent, and the yield on investments (YoI) increased to 7.15 per cent. The domestic net interest margin (NIM) saw a slight improvement, while the cost-to-income ratio reduced by 368 basis points. Additionally, GNPA and NNPA saw QoQ reductions.

Also read: Indian Bank partners with Tata Power Solar to accelerate energy adoption

Indian Bank continues to expand its network, with 5846 domestic branches, 5093 ATMs, and 11945 business correspondents. The bank has seen significant growth in digital banking, with business through digital channels reaching ₹36678 crore in Q1 FY25. Mobile banking users increased by 33 per cent YoY, UPI users by 30 per cent, and net banking users by 26 per cent. Credit card users grew by 40 per cent YoY, and the number of Point of Sale (PoS) terminals increased by 66 per cent.

The bank received several accolades, including the Best Customer Experience Initiatives Award (Public Sector Bank) at ACI South Asia Converge 2024 and recognition as the Best Performing Banks in Tamil Nadu under SHG Linkage by NABARD. The bank also received the APY Annual Award of Visionary Achiever from PFRDA for exceeding its annual target by 112 per cent.

Indian Bank remains focused on delivering value-added solutions through empowered employees and smart technology use, aiming to simplify banking and make it more accessible, convenient, and secure for everyone. The bank has launched several digital products, including the INDSMART omni-channel banking application, offering features like integrated bill payment, e-shopping, and seamless loan applications.

With a focus on leveraging technology and providing personalized service, Indian Bank aims to be a trusted partner driving positive change in the financial landscape.

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