Indian Bank Q2 Results: Net Profit Up By 36% YoY At Rs 2707 Cr; NII Increased By 8% To Rs 6194 Cr

The financial results for Indian Bank's second quarter (Q2) and half-year of FY 2024-25, which ended on September 30, 2024, were revealed today. From Rs 1988 Cr in Sep'23 to Rs 2707 Cr in Sep'24, net profit increased 36% year on year. The bank's operating profit increased from Rs 4303 Cr in Q2FY24 to Rs 4728 Cr in Q2FY25, a 10% YoY improvement. From Rs 5741 Cr in the year-ago quarter to Rs 6194 Cr in the current one, net interest income grew by 8% YoY.

From Rs 806 Cr on Sep. 23 to Rs 891 Cr on Sep. 24, fee-based income increased by 11% YoY. The bank's return on equity (RoE) rose 114 basis points to 21.04% in the current quarter from 19.90% in the year-ago quarter, while its return on assets (RoA) improved 27 basis points to 1.33% from 1.06%. While the Indian Bank's total deposits rose 8% YoY to Rs 693115 Cr in Sep'24 from Rs 640803 Cr in Sep'23, gross advances climbed 12% YoY to Rs 550644 Cr in Sep'24 from Rs 492288 Cr in Sep'23. Deposits in current, savings, and CASA increased by 8%, 4%, and 5% year on year, respectively.

As of September 30, 2024, the bank's domestic CASA ratio was 40.47%, while its CD ratio was 79%. NNPA dropped 33 basis points to 0.27% in September 24 from 0.60% in September 23 and GNPA dropped 149 basis points year on year to 3.48% in September 24 from 4.97% in September 23. The Provision Coverage Ratio (PCR, including TWO) increased from 95.64% in September 23 to 97.60% in September 24 (a YoY improvement of 196 bps). The capital adequacy ratio increased to 16.55%, a gain of 102 basis points. In Sep. 24, Tier I Capital increased by 138 bps YoY to 14.01%, while CET-I climbed by 144 bps YoY to 13.51%. In Q2FY25, earnings per share (EPS) climbed from Rs 63.84 in Q2FY24 to Rs 80.37.

Of the Bank's 5856 domestic branches (including three DBUs), 1174 are in the urban category, 1167 are in the metro area, 1532 are semi-urban, and 1983 are rural. The bank has one IBU (Gift City Branch) and three branches abroad. The bank has 12993 Business Correspondents (BCs) and 5217 ATMs and BNAs.