Indian Bank has reported a strong financial performance for the fourth quarter ended March 2025, with steady growth across key parameters.
The bank’s net profit rose by 32% year-on-year, reaching ₹2,956 crore, compared to ₹2,247 crore in the same period last year. This growth was supported by a 17% increase in operating profit, which stood at ₹5,019 crore for the quarter, up from ₹4,305 crore a year ago.
Net interest income (NII), a key measure of a bank’s core earnings, increased by 6% to ₹6,389 crore from ₹6,015 crore in the corresponding quarter of the previous year. Improvement in return metrics was also observed, with Return on Assets (RoA) rising by 22 basis points to 1.37% and Return on Equity (RoE) increasing by 195 basis points to 21.01%. The bank’s yield on investments improved to 7.23%, up by 35 basis points.
Operational efficiency also saw gains as the cost-to-income ratio came down to 45.05% from 47.99%, reflecting better expense management. The yield on advances for the quarter was recorded at 8.64%. Total gross advances rose by 10% year-on-year to ₹5.88 lakh crore, driven by growth in the retail, agriculture, and MSME (RAM) segments. RAM advances grew by 13% year-on-year to ₹3.51 lakh crore and now contribute over 64% to the bank’s domestic loan book. Within RAM, retail, agriculture, and MSME lending grew by 14%, 14%, and 12%, respectively, with home loans (including mortgages) registering a 12% growth.
Indian Bank also met regulatory requirements comfortably, with priority sector lending at 44% of adjusted net bank credit (ANBC), exceeding the 40% threshold. Total deposits stood at ₹7.37 lakh crore as of March 2025, a 7% increase from ₹6.88 lakh crore a year ago. The domestic current account and savings account (CASA) ratio was reported at 40.17%, while the credit-deposit (CD) ratio stood at 79.79%.
Asset quality showed meaningful improvement. The gross non-performing assets (GNPA) ratio declined to 3.09%, down by 86 basis points year-on-year. The net NPA (NNPA) ratio improved to 0.19%, a reduction of 24 basis points. The provision coverage ratio (PCR), including technical write-offs, rose to 98.10%, up by 176 basis points. Slippage ratio, a measure of fresh NPAs as a percentage of standard advances, was contained at 1.09%, slightly lower than 1.11% in the previous year.
