Indian Bank posts over ₹10000 cr annual profit for first time in FY25; Q4 net profit up 32%

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Indian Bank posts over ₹10,000 cr annual profit for first time in FY25; Q4 net profit up 32%

Indian Bank reported a 32% YoY rise in Q4FY25 net profit to Rs 2,956 crore, driven by higher interest income and lower provisions. Total business crossed Rs 13.25 lakh crore, with strong growth in advances and improved asset quality. FY25 net profit surged 35% to Rs 10,918 crore.

Indian Bank on Saturday reported a 32% year-on-year (y-o-y) jump in net profit for Q4FY25 at Rs 2,956 crore. The rise was driven by growth in interest income and lower provisioning expenses.

Interest income of the state-owned lender saw an 8% rise to Rs 15,856 crore, while interest expense rose by 10% to Rs 9,467 crore. Net interest income grew by 6.2% to Rs 6,389 crore.

Domestic net interest margin (NIM) for the quarter under review was 3.48% compared to 3.52% for the same quarter last year. NIM for the full year stood at 3.51% in FY25.

Binod Kumar, MD and CEO, Indian Bank, attributed the NIM contraction to the impact of repo rate cuts on lending rates and elevated cost of deposits.

“We have passed on the repo rate cuts to our customers, but deposit rates remain elevated. That’s the reason for the marginal decline in NIM,” Kumar said, addressing the bank’s Q4FY25 earnings media briefing. He added that the pressure on the deposit side will gradually come down as the differential between interest rates on fixed deposits and Current Account, Savings Account (CASA) deposits narrows further.

The total business of the bank grew by 8.5% y-o-y to cross the Rs 13-lakh crore milestone, at Rs 13.25 lakh crore, as of March 2025. Deposits grew by 7.1% y-o-y to Rs 7.37 lakh crore, while advances grew at a faster pace of 10.2% to Rs 5.88 lakh crore.

Retail, agriculture and MSME (RAM) segments contributed 64% to the bank’s Rs 5.46-lakh crore of domestic advances, while the remaining came from the corporate loan book.

On the deposit side, the share of low-cost CASA deposits stood at 40% of the domestic deposits during the quarter.

The bank showed improvement on the asset quality front with gross non-performing assets (NPAs) declining to 3.09% of gross loans by the end of March 2025, from 3.95% a year ago. Net NPAs also came down to 0.19% from 0.43% during the comparable quarters.

Fresh slippages (including RAM and corporate loans) increased marginally during the quarter to Rs 1,393 crore compared to Rs 1,238 crore in the year-ago quarter.

For the full year, Indian Bank’s net profit was up 35% to Rs 10,918 crore in FY25.