Indian Bank Reports 11.9% Increase in Q2 Net Profit with Improved Asset Quality and Reduced Fresh Slippages

Indian Bank , a prominent public sector lender, has released its financial results for the second quarter of the fiscal year, showcasing robust growth, improved asset quality, and a significant reduction in fresh slippages.

Key Financial Highlights

Metric	Q2 (Current Year)	Q2 (Previous Year)	Change
Net Profit	₹30.20 billion	₹27.00 billion	+11.9%
Interest Earned	₹166.00 billion	₹153.00 billion	+8.5%
Gross NPA	2.60%	3.01% (QoQ)	-41 bps
Net NPA	0.16%	0.18% (QoQ)	-2 bps

Profitability and Revenue Growth

Indian Bank has reported a significant increase in its net profit for the second quarter, rising to ₹30.20 billion from ₹27.00 billion in the same period last year, marking an 11.9% year-over-year growth. This improvement in profitability was supported by a healthy increase in interest income, which grew by 8.5% to reach ₹166.00 billion, up from ₹153.00 billion in the corresponding quarter of the previous year.

Asset Quality Improvement

The bank has demonstrated notable progress in managing its asset quality:

Gross Non-Performing Assets (GNPA) ratio improved to 2.60%, down from 3.01% in the previous quarter.
Net Non-Performing Assets (NNPA) ratio also saw a reduction, decreasing to 0.16% from 0.18% quarter-over-quarter.

This improvement in asset quality indicators suggests effective management of bad loans and potential risks in the bank's loan portfolio.

Reduction in Fresh Slippages

In a positive development, Indian Bank's fresh slippages decreased to ₹11.32 billion compared to ₹13.3 billion in the previous quarter. This represents a quarter-on-quarter reduction of approximately ₹2 billion in new non-performing assets, further underlining the bank's improved asset quality management.

Provisions and Risk Management

Indian Bank's prudent approach to risk management is reflected in its provisioning:

Provisions for non-performing assets stood at ₹3.80 billion, slightly lower than the ₹3.87 billion reported in the previous quarter.
The marginal decrease in provisions, coupled with improved asset quality and reduced fresh slippages, indicates the bank's confidence in its loan book and risk assessment processes.

Conclusion

Indian Bank's Q2 results demonstrate a positive trajectory with improved profitability, asset quality, and a significant reduction in fresh slippages. The substantial growth in net profit, coupled with increased interest income, better NPA ratios, and decreased new non-performing assets, reflects the bank's resilience and effective management strategies in a challenging economic environment. As the bank continues to strengthen its financial position and improve its asset quality, it remains well-positioned to capitalize on growth opportunities in the Indian banking sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.47%	+0.79%	+11.17%	+36.01%	+52.56%	+1,212.67%

Indian Bank , a prominent public sector lender, has announced impressive growth in its key financial metrics for the half-year ended September 30, 2025. The bank's performance demonstrates strong momentum in both its deposit base and lending activities.

Deposit and Advance Growth

Indian Bank reported a significant increase in its total deposits, which grew by 12% year-over-year to reach ₹7.76 lakh crore. This growth in deposits indicates strong customer confidence and the bank's ability to attract funds effectively.

Simultaneously, the bank's gross advances exhibited a robust expansion of 12.9% year-over-year, reaching ₹6.22 lakh crore. This growth in lending activities suggests a healthy demand for credit and the bank's proactive approach in meeting the financial needs of its customers.

Business Segments Performance

The bank's total business, which combines deposits and advances, grew by 12.4% year-over-year, amounting to ₹13.98 lakh crore. This overall growth reflects the bank's strong performance across its various business segments.

Notably, Indian Bank's RAM (Retail, Agriculture, and MSME) portfolio, focusing on domestic lending, showed exceptional growth of 16.3% year-over-year, reaching ₹3.78 lakh crore. This performance underscores the bank's commitment to supporting key sectors of the Indian economy.

Deposit Composition

Breaking down the deposit growth, Indian Bank reported:

Savings Bank (SB) deposits increased by 6.4% to ₹2.48 lakh crore
Current Account (CA) deposits grew by an impressive 13.9% to ₹0.41 lakh crore

The substantial growth in current account deposits is particularly noteworthy, as it typically represents a stable and low-cost source of funds for the bank.

Financial Highlights

Particulars (in ₹ Lakh Crore)	30.09.2025 (Provisional)*	30.09.2024	Y-o-Y Growth (%)
Total Business	13.98	12.44	12.40
Total Deposits	7.76	6.93	12.00
Gross Advances	6.22	5.51	12.90
RAM (Domestic)	3.78	3.25	16.30

*Subject to review by the Statutory Central Auditors of the Bank.

Auditor Update

In a separate announcement, Indian Bank informed that the limited review of its financial results for the quarter and half-year ended September 30, 2025, will be conducted by a new team of Statutory Central Auditors (SCAs). The new team comprises:

M/s S Singhal & Co., Chartered Accountants, Jaipur
M/s G Balu Associates LLP, Chartered Accountants, Chennai
M/s Dass Gupta & Associates, Chartered Accountants, New Delhi
M/s Arun K Agarwal & Associates, Chartered Accountants, New Delhi

M/s Kailash Chand Jain & Co., Chartered Accountants, Mumbai, has completed its term as the bank's SCA.

Indian Bank's strong performance across key metrics reflects its resilience and strategic focus on growth. The double-digit increase in both deposits and advances positions the bank well for continued expansion in the Indian banking sector.