Indian Bank Q4 profit soars 32% to ₹2,956 crore helped by improvement in core income

State-owned Indian Bank on Saturday (May 3, 2025) reported a 32% jump in net profit to ₹2,956 crore for the March quarter of 2024-25, helped by a decline in bad loans and a rise in core income.
| Photo Credit: AMAN RAJ

State-owned Indian Bank on Saturday (May 3, 2025) reported a 32% jump in net profit to ₹2,956 crore for the March quarter of 2024-25, helped by a decline in bad loans and a rise in core income.

The Chennai-based lender had earned a net profit of ₹2,247 crore in the year-ago period.

During the quarter, the bank’s total income increased to ₹18,599 crore from ₹16,887 crore a year ago, Indian Bank said in a regulatory filing.

Interest income grew to ₹15,856 crore from ₹14,624 crore in the fourth quarter of the previous financial year. Net Interest Income (NII) in the quarter also improved to ₹6,389 crore from ₹6,015 crore in the same period a year ago.

On the asset quality front, the bank’s gross Non-Performing Assets (NPAs) moderated to 3.09% of gross advances as compared to 3.95 per cent by the end of March 2024.

Similarly, Net NPAs came down to 0.19% of the net advances over 0.43% at the end of 2024.

Provision Coverage Ratio of the bank rose to 98.10% as of March 31, 2025, from 96.34% at the end of the previous year.

The bank’s capital adequacy ratio rose to 17.94% from 16.44 per cent at the end of FY24.

For the entire financial year 2024-25, the bank reported a 35% increase in profit at ₹10,918 crore as against ₹8,063 crore in the previous year.

The bank’s total income during the financial year rose to ₹71,226 crore as against ₹63,482 crore a year ago.

NII rose to ₹25,176 crore from ₹23,274 crore in the previous year. Net Interest Margin in the year stood at 3.51% for the year ended March 2025.

The bank’s board has recommended a dividend of 16.25 paise per equity share of the face value of ₹10 each for 2024-25 subject to the approval of the shareholders at the ensuing Annual General Meeting.

The board has also approved raising up to ₹7,000 crore through a mix of equity and bonds during the ongoing financial year. Of this, the bank has taken approval for raising equity capital aggregating upto ₹5,000 crore (including premium) through QIP or Rights Issue or in combination.

Besides, it proposes to raise up to ₹2,000 crore through issuance of Basel III Compliant AT-1 Perpetual Bonds/Tier 2 Bonds in one or more tranches during the current or subsequent financial years based on the requirement, it added.