Indian Bank reports 10% rise in net profit to Rs 3,273 cr in Q1

State-owned Indian Bank on Friday posted a 10 per cent rise in net profit to Rs 3,273 crore in the first quarter of the current financial year.

The Chennai-based lender had earned a net profit of Rs 2,973 crore in the same quarter of the previous fiscal.

The lender’s total income increased to Rs 20,724 crore during the June quarter of 2026-27 from Rs 18,721 crore in the same period of FY26, Indian Bank said in a regulatory filing.

Interest earned by the bank also improved to Rs 18,090 crore, compared to Rs 16,283 crore in the year-ago period.

Net Interest Income (NII) increased by 17 per cent to Rs 7,435 crore from Rs 6,359 crore in the June quarter of FY26, it said. During the period under review, its operating profit increased to Rs 5,557 crore from Rs 4,770 crore in the same quarter a year ago.

The bank’s asset quality showed improvement as gross non-performing assets (NPAs) declined to 1.86 per cent of gross advances at the end of the June quarter from 3.01 per cent a year ago.

Similarly, net NPAs, or bad loans, declined to 0.15 per cent, against 0.18 per cent in the year-ago period.

As a result, provisions for bad loans declined to Rs 376 crore during the first quarter from Rs 387 crore a year ago.

Provision Coverage Ratio (PCR) remained static at 98.2 per cent during the quarter.

At the same time, Return on Assets (ROA) improved to 1.34 per cent for June 2026 against 1.03 per cent in June 2025.

Capital adequacy ratio of the bank declined to 17.80 per cent from 17.99 per cent in the same quarter of FY26.