Indian Bank Q3 Results: Net Profit Tops Rs 3,000 Cr; Asset Quality, ROE All Improve

Indian Bank's financial results for the third quarter and nine months of FY 2025-2026, which ended on December 31, 2025, were made public today. In the December 2025 quarter, the bank's financial performance was excellent, with solid profitability and strong operational efficiency. Operating profit grew steadily, rising 5.79% YoY to Rs 5,024 crore, supporting a 7.33% year-on-year growth in net profit to Rs 3,061 crore.

This improved performance was reflected in profitability ratios. In December 2025, Return on Assets (RoA) increased to 1.30%, but Return on Equity (RoE) remained at a robust 19.11%. With a yield on investments at 6.95% and a yield on advances at 8.31%, yield metrics continued to be encouraging. The cost-to-income ratio reduced to 46.90%, suggesting greater cost control coupled with revenue growth, and operational efficiency also strengthened.

Gross advances on the balance sheet climbed 14.24% YoY to Rs 6,38,848 crore, indicating consistent credit demand across key segments. Retail, Agriculture, and MSME (RAM) advances climbed at a higher rate of 16.65% YoY to Rs 3,90,459 crore, highlighting the bank's emphasis on consistent and granular lending.

Retail, agriculture, and MSME advances climbed 18.54%, 15.14%, and 16.41% YoY within RAM, while home loans (including mortgages) had a robust surge of 14.20%. The retail, agri, and MSME segments each provided 18.54%, 15.14%, and 16.41% of the total domestic advances, with RAM advances accounting for 66.06%.

With total deposits rising 12.62% YoY to Rs 7,90,923 crore, the bank also improved its liability franchise. Deposits in current accounts and savings accounts (CASA) saw positive growth, increasing 19.13% YoY. As of December 31, 2025, the domestic CASA ratio was a robust 39.08% due to a rise of 8.45% in current account deposits and 9.86% in domestic savings account balances. The credit-deposit (CD) ratio stayed high at 80.77%, indicating effective fund management.

Over the course of the quarter, asset quality indicators continued to significantly improve. Net NPAs fell precipitously by 65 basis points to only 0.15%, while gross NPAs dropped by 103 basis points YoY to 2.23%. The provision coverage ratio (including two) grew by 19 basis points YoY to 98.28%, demonstrating a cautious approach to provisioning. Additionally, the slippage ratio increased to 0.69% from 0.78% the year before, demonstrating improved credit recovery and underwriting.

With CET-1 increasing 127 basis points YoY to 14.54% and Tier-1 capital improving by 77 basis points to 14.54%, the capital adequacy ratio climbed by 66 basis points to 16.58%. Earnings per share (EPS) rose from Rs 84.70 in December 2024 to Rs 90.92 in December 2025, reflecting the overall earnings growth and supporting the bank's consistent value generation for shareholders.

With 5965 domestic branches (including three DBUs), Indian Bank has 2001 rural, 1592 semi-urban, 1191 urban, and 1181 metro branches. In Q3FY26, the bank had 16,247 Business Correspondents (BCs), 5624 ATMs and BNAs, and one IBU (Gift City Branch) in addition to three overseas branches.