Indian Bank Q2 Results: Profit, Advances, And Asset Quality All Rise; Big Win For The PSU

Indian Bank has reported a robust financial performance for the quarter and half-year ended September 30, 2025.

For the quarter ended September 2025, the bank's net profit rose by 11.49% year-on-year to Rs 3,018 crore compared to Rs 2,707 crore in September 2024, while operating profit increased by 2.31% to Rs 4,837 crore. Net Interest Income (NII) expanded by 5.76% to Rs 6,551 crore, and the Return on Assets (RoA) and Return on Equity (RoE) stood at 1.32% and 19.58%, respectively.

With the Retail, Agriculture, and MSME (RAM) categories growing by 15.57% and accounting for 65.50% of all domestic advances, the gross advances climbed 12.65% YoY to Rs 6,20,324 crore. While the CASA ratio was 38.87%, total deposits rose 12.09% to Rs 7,76,946 crore. With a Provision Coverage Ratio (PCR) of 98.28%, asset quality significantly improved as GNPA fell to 2.60%, down 88 basis points YoY, and NNPA to 0.16%. A robust Capital Adequacy Ratio of 17.31%, bolstered by a CET-1 ratio of 14.80%, was also announced by the bank.

Indian Bank's net profit for the half-year that ended in September 2025 increased 17.24% YoY to Rs 5,991 crore from Rs 5,110 crore the year before. NII climbed by 4.35% to Rs 12,910 crore, while operating profit improved by 4.08% to Rs 9,607 crore. While the RoE remained at 19.93%, the RoA jumped by 7 basis points to 1.33%. Stronger asset quality was demonstrated by the bank's reduced credit cost of 41 basis points to 0.27% and its continued solid Net Interest Margin (NIM) of 3.35%.

The bank continues to fortify its digital ecosystem with 5,955 domestic branches, 5,565 ATMs, and more than 15,500 business correspondents. In H1FY26, it generated Rs 1.23 lakh crore in business from digital channels. YoY, mobile banking users jumped by 17%.

"Our focus remains on staying agile in a dynamic environment, building trust through transparency and delivering personalised experiences. We are investing in innovation, expanding access to underserved segments and strengthening our foundation for long term success," said Indian Bank in a statement on Thursday.

Net banking users make up 6% and UPI users 24%. Numerous awards, such as the Rajbhasha Kirti Award 2025 and the VMware Cloud Leader - India 2025 Award, were given to Indian Bank during the quarter in recognition of its operational excellence, highlighting its leadership in innovation and customer-focused expansion.