Indian Bank (INDIANB) Q1 25/26 earnings summary

Executive summary

• Net profit for Q1FY26 rose 23.7% YoY to ₹2,973 crore, with operating profit up 6% YoY to ₹4,770 crore.

• Total business grew 1.52% QoQ and 10.25% YoY, reaching ₹13.45 trillion.

• Asset quality improved, with gross NPA at 3.01% (down 76 bps YoY) and net NPA at 0.18% (down 21 bps YoY).

• Digital initiatives and branch expansion are underway to drive growth and improve customer experience.

• Unaudited standalone and consolidated financial results for Q1 FY26 were reviewed and approved by the Board on July 24, 2025.

Financial highlights

• Deposits grew 0.97% QoQ and 9.3% YoY; advances up 2.21% QoQ and 10.6% YoY.

• Net interest income for Q1FY26 was ₹6,359 crore, up 2.93% YoY; non-interest income surged 28% YoY to ₹2,439 crore.

• Operating profit at ₹4,770 crore, up 5.97% YoY but down 4.96% QoQ.

• Cost-to-income ratio increased to 45.78%.

• Provision coverage ratio improved to 98.20%.

Outlook and guidance

• Deposit growth guidance at 8-10%, advances at 10-12%, CASA ratio target around 40%.

• NIM guidance maintained at 3.15%-3.30%; ROA at 1.20% (actual 1.34%).

• Credit cost expected to settle between 50-70 bps, below 1% guidance.

• Digital business continues robust growth, with digital transactions at 93% of total in Q1FY26.

• No revision in recovery guidance from written-off accounts; steady profit and growth targeted.