Indian Bank Reports 36% Surge in Q2 Net Profit, Strengthens Asset Quality and Capital Position

Indian Bank has reported robust financial results for the second quarter and the half-year of FY 2024-25. Key highlights include:

• Net Profit: The bank’s net profit surged by 36% year-on-year, rising from ₹1,988 crore in Q2 FY24 to ₹2,707 crore in Q2 FY25.
• Operating Profit: There was a 10% increase in operating profit, moving from ₹4,303 crore to ₹4,728 crore YoY.
• Net Interest Income (NII): NII grew by 8% YoY, increasing from ₹5,741 crore in the previous year to ₹6,194 crore in the current quarter.
• Fee-Based Income: This metric also improved, rising 11% YoY from ₹806 crore to ₹891 crore.
• Return on Equity (RoE): The RoE climbed by 114 basis points, reaching 21.04%, compared to 19.90% in the year-ago quarter.
• Return on Assets (RoA): The RoA saw an increase of 27 basis points, improving from 1.06% to 1.33% YoY.
• Total Deposits: The bank’s total deposits rose by 8% YoY, from ₹640,803 crore to ₹693,115 crore.
• Gross Advances: Gross advances increased by 12% YoY, up from ₹492,288 crore to ₹550,644 crore.
• Current, Savings, and CASA Deposits: Deposits in these categories rose by 8%, 4%, and 5%, respectively.
• CASA Ratio: As of September 30, 2024, the domestic CASA ratio stood at 40.47%, while the credit-deposit (CD) ratio was 79%.

Asset Quality:

• Net Non-Performing Assets (NNPA): Decreased by 33 basis points to 0.27%, down from 0.60% YoY.
• Gross Non-Performing Assets (GNPA): Improved by 149 basis points, falling to 3.48% from 4.97% in the previous year.
• Provision Coverage Ratio (PCR): The PCR, including TWO, improved from 95.64% to 97.60%, a rise of 196 basis points.

Capital Position:

• Capital Adequacy Ratio: Increased to 16.55%, with Tier I capital rising by 138 basis points YoY to 14.01%.
• Common Equity Tier I (CET-I): Climbed by 144 basis points YoY to 13.51%.

Earnings per Share (EPS): The EPS increased from ₹63.84 in Q2 FY24 to ₹80.37 in Q2 FY25.

Branch Network: The bank operates 5,856 domestic branches (including three Digital Banking Units), with a wide distribution that includes urban, metro, semi-urban, and rural locations. Additionally, it has one International Banking Unit in Gift City and three branches abroad, supported by 12,993 Business Correspondents and 5,217 ATMs.

Overall, these results reflect Indian Bank’s strong performance and effective management strategies in the financial sector.

Disclaimer: The information provided herein is for informational purposes only and should not be construed as financial advice. Readers are encouraged to conduct their own research and consult with a financial advisor before making any investment decisions. The figures mentioned are subject to change and should be verified with official sources.