Indian Bank reports a 35% YoY surge in Q3 profit to ₹2,852 crore, driven by a 10% rise in NII and improved asset quality, with strong stock market performance.
Indian Bank, a prominent public sector bank in India, announced strong financial results for the third quarter of FY25, reporting a 34.58% year-on-year (YoY) increase in standalone net profit. The bank’s profit for Q3 FY25 surged to ₹2,852.36 crore, up from ₹2,119.35 crore in the same period last year. This performance highlights the bank’s continued growth trajectory and financial stability.
The state-owned bank, headquartered in Chennai, Tamil Nadu, also recorded a 10.32% rise in its net interest income (NII) for the quarter, reaching ₹6,414.72 crore, compared to ₹5,814.19 crore in Q3 FY24. On a quarter-on-quarter (QoQ) basis, NII increased by 3.55% from ₹6,194.22 crore in the previous quarter.
Improvement in Asset Quality and Margins
Indian Bank showed marked improvement in its asset quality, with a significant reduction in non-performing assets (NPAs). Gross NPAs declined to ₹18,208.35 crore in Q3 FY25 from ₹22,786.5 crore in the same quarter last year, reflecting a strong 20% decrease. The gross NPA percentage improved to 3.26% from 4.47% in Q3 FY24, and net NPAs decreased to ₹1,126.86 crore from ₹2,578.72 crore YoY. The net NPA percentage stood at 0.21%, down from 0.53% in Q3 FY24.
The bank’s operating margin also showed strong performance, coming in at 26.52%, higher than 25.45% in the same quarter last year. Additionally, the net profit margin rose to 15.92%, significantly improving from 13.16% in Q3 FY24.
Stock Performance and Market Reaction
Following the impressive results, Indian Bank’s share price surged by 7% on January 29, 2025, reaching a high of ₹551. By 1:55 pm, the stock was trading at ₹541.30, up 5.18% from the previous session. The bank’s strong earnings, coupled with improvements in asset quality and margin performance, have boosted investor confidence and led to the positive market reaction.
Indian Bank’s robust performance in Q3 FY25 signals continued growth in the face of a competitive banking landscape. With improving asset quality, strong profit margins, and rising NII, the bank is well-positioned to maintain its positive trajectory and contribute to the growth of India’s banking sector.
