Indian Bank's Profit Surges by 24% in Q1 FY26, Reaching ₹2,973 Crores; Enhanced Asset Quality Reported
Indian Bank Posts Strong Q1 FY26 Performance with 24% Year-on-Year Growth in Net Profit
Indian Bank has reported impressive financial results for the first quarter of the fiscal year 2025-2026 (FY26). According to CNBC TV18, the net profit (PAT) for Q1 FY26 stands at approximately ₹2,972.82 crore, marking a significant 23.7% year-on-year increase from ₹2,403.42 crore in Q1 FY25.
The bank's net interest income (NII) also saw a 2.9% increase to ₹6,359 crore in Q1 FY26 compared to ₹6,178 crore in the previous year. Total income rose about 10-11% year-on-year to roughly ₹18,700 crore.
One of the key factors contributing to Indian Bank's improved performance is the reduction in slippages. Fresh slippages for the bank in Q1 FY26 were ₹1,334 crore, a decrease of 31% year-on-year. The slippage ratio also decreased to 0.9% in Q1 FY26 from 1.5% in the previous year.
Binod Kumar, MD & CEO of Indian Bank, attributed this success to improvements in credit underwriting and the use of in-house predictor tools for bad loans.
In the retail, agriculture, and MSME (RAM) segments, gross advances grew by 16% year-on-year in the quarter. However, specific segment-wise loan growth figures for Indian Bank are not provided in the available data.
The bank's asset quality also improved, with the net NPA declining 21 basis points (bps) to 0.18% in Q1 FY26. This is a significant improvement from the 0.39% net NPA in the same quarter last year.
Indian Bank also reported a growth in digital business, with ₹57,955 crore generated through digital channels in Q1 FY26. The number of mobile banking users for the bank has grown by 15% year-on-year, reaching 2.02 crore.
Looking ahead, Binod Kumar predicted that Indian Bank is on track to touch the ₹3,000-crore mark in net profit in the coming quarter.
| Metric | Q1 FY26 (YoY) | Source | |----------------------------|--------------------------------------------|-----------------| | Net Profit (PAT) | ₹2,972.82 crore (+23.7%) | CNBC TV18 [1] | | Revenue | ~₹18,700 crore (+10-11%) | Univest, CNBC [2] | | Net Interest Income (NII) | ₹6,359 crore (+2.9%) | CNBC TV18 [1] | | Non-Interest Income | Not disclosed specifically | — | | Advances Total | Not available | — | | Retail/Agriculture/MSME Lending | Not specifically reported | — | | Asset Quality (Net NPAs) | Improved to 0.18% from 0.39% | CNBC TV18 [1] | | Mobile Banking Users | 2.02 crore (+15%) | — |
[1] CNBC TV18, [Date of Publication], Available at: https://www.cnbctv18.com/business/markets/indian-bank-posts-24-yoy-growth-in-net-profit-to-2973-crore-in-q1-fy26-4419901.htm [2] Univest, [Date of Publication], Available at: https://www.univest.co.in/research/indian-bank-q1-fy26-results-analysis-28-may-2022
- Indian Bank's strong Q1 FY26 performance in the finance sector was marked by a growth in digital business, with ₹57,955 crore generated through digital channels.
- The while the personal-finance of Indian Bank saw a significant increase, with the net profit (PAT) for Q1 FY26 standing at approximately ₹2,972.82 crore, marking a 23.7% year-on-year increase.
- Financing in the retail, agriculture, and MSME (RAM) segments experienced a growth of 16% year-on-year in the quarter.
- The bank's success can be attributed to improvements in credit underwriting and the use of in-house predictor tools for bad loans, according to Binod Kumar, MD & CEO of Indian Bank.
- Looking towards the future, Binod Kumar predicted that Indian Bank is on track to touch the ₹3,000-crore mark in net profit in the coming quarter.
- Energy and sustainability initiatives may potentially play a role in Indian Bank's strategies, as they could lead to new investment opportunities in renewable energy markets.
