Indian Bank Q3 Results: Profit Surges 35% YoY to Rs 2,852 Crore
State-owned Indian Bank has reported a significant 35% year-on-year increase in its third-quarter net profit, reaching Rs 2,852 crore. This growth, up from Rs 2,119 crore in the same period last year, is attributed to higher earnings and lower provisions.
Financial Performance Overview
Indian Bank's net interest margin (NIM) for the quarter improved to 3.45% from 3.41% in the year-ago period. The bank's new Managing Director, Binod Kumar, who assumed the role earlier this month, stated, "Higher net interest income and healthy recovery contributed to the rise in profitability."
The bank's operating profit stood 16% higher year-on-year at Rs 4,749 crore, compared to Rs 4,097 crore in Q3 FY24. Net interest income (NII) rose by 10% to Rs 6,415 crore, up from Rs 5,815 crore in the corresponding quarter of the previous year.
Provisions and Asset Quality
Total provisions were lower at Rs 1,059 crore, compared to Rs 1,349 crore in the year-ago period. Provisions to cover bad loans were Rs 611 crore, down from Rs 906 crore, reflecting an improvement in asset quality.
The bank's gross non-performing assets (NPA) ratio improved to 3.26% at the end of December 2024, down from 4.47% a year earlier. Net NPA stood at 0.21%, compared to 0.53% in the same period last year. The provision coverage ratio improved by 219 basis points to 90.09%.
Advances and Deposits
Indian Bank's gross advances grew by 10% year-on-year to Rs 5.59 lakh crore, with retail, agriculture, and MSME loans contributing 64.4%. Total deposits rose by 7% to Rs 7.02 lakh crore.
Indian Bank's strong Q3 FY25 results demonstrate the bank's continued growth and improved financial health. The increase in net profit, driven by higher earnings and lower provisions, along with improvements in asset quality, positions the bank well for future performance.
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