Public sector lender Indian Bank has recorded a 35 per cent rise in net profit for the December 2024 quarter, driven by higher income growth and lower provisions.

For the quarter ended December 2024, the bank’s net profit surged to ₹2,852 crore, compared to ₹2,119 crore in the same period last year. Operating profit increased by 16 per cent to ₹4,749 crore from ₹4,097 crore, supported by a 10 per cent rise in net interest income, which reached ₹6,415 crore from ₹5,815 crore in Q3FY24.

Interest income grew 11 per cent to ₹15,759 crore (₹14,198 crore), while non-interest income rose 13 per cent to ₹2,152 crore (₹1,902 crore).

Commenting on the results, Binod Kumar, MD & CEO of Indian Bank, said, “Indian Bank has consistently delivered strong financial performance, and Q3 was no exception. Our total business has crossed ₹12.5 lakh crore. Despite an industry-wide decline in CASA percentage, we have maintained a strong 40 per cent ratio. The credit-deposit ratio stands at a robust 79.63 per cent, and our asset quality remains among the best in the industry. Across key metrics, we have seen year-on-year and quarter-on-quarter improvements.”

Provisions (excluding taxes) declined by 21.5 per cent to ₹1,059 crore from ₹1,350 crore.

“We have consistently maintained higher recoveries than fresh slippages,” said Kumar. Fresh slippages were also lower at ₹1,004 crore compared to ₹1,429 crore in Q3FY24. The agriculture sector accounted for the highest share at ₹527 crore (₹592 crore last year), followed by MSME (₹329 crore), retail (₹140 crore), and corporate (₹8 crore). Total recoveries (cash and upgrades) declined to ₹1,911 crore from ₹2,509 crore in the year-ago quarter.

The bank’s asset quality continued to strengthen, with gross NPA reducing to 3.26 per cent in Q3FY25 from 4.47 per cent a year ago and 3.48 per cent in the previous quarter. Net NPA fell to 0.21 per cent from 0.53 per cent last year and 0.27 per cent in Q2FY25.

Domestic advances increased by 9.7 per cent to ₹5,20,224 crore in Q3FY25 (from ₹4,74,355 crore in Q3FY24). Retail, agriculture, and MSME (RAM) loans saw strong growth, rising 15.8 per cent (₹1,14,894 crore), 13.5 per cent (₹1,29,840 crore), and 8.2 per cent (₹90,005 crore), respectively. These segments now account for 64.35 per cent of gross domestic loans, up from 62.58 per cent a year ago. Corporate loans grew by 4.5 per cent to ₹1,85,485 crore.

Domestic deposits increased by 6.7 per cent to ₹6,71,577 crore (₹6,29,401 crore). Domestic CASA share saw a slight dip to 40 per cent from 41.14% in Q2FY24. Overall, Indian Bank’s total business grew 8.5 per cent year-on-year, reaching ₹12.61 lakh crore as of December 31, 2024.

Published on January 29, 2025