Indian Bank’s shares surged 3% following a robust financial performance for the fourth quarter ended March 2025. As of 10:34 AM, the shares were trading 3.17% higher at Rs 575.80.
The bank reported a 32% year-on-year (YoY) increase in net profit, reaching ₹2,956 crore, up from ₹2,247 crore in Q4 FY24. This growth was driven by a 17% rise in operating profit, which stood at ₹5,019 crore.
Key growth drivers included a 6% YoY increase in net interest income (NII) to ₹6,389 crore and an improvement in return ratios, with Return on Assets (RoA) rising to 1.37% and Return on Equity (RoE) hitting 21.01%. The bank’s operational efficiency also improved, with the cost-to-income ratio dropping to 45.05% from 47.99%.
Indian Bank saw strong growth in its core segments, with gross advances rising 10% YoY to ₹5.88 lakh crore, supported by a 13% growth in RAM (retail, agriculture, MSME) advances. The bank’s CASA ratio stood at 40.17%, contributing to a healthy credit-deposit ratio of 79.79%.
Asset quality improved significantly, with the GNPA ratio dropping to 3.09% and the net NPA ratio improving to 0.19%. The provision coverage ratio (PCR) rose to 98.10%.
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