Indian Bank Q1 Results: Net Profit Rises to ₹3,273 Cr, Shares Jump 10%

State-owned Indian Bank reported a healthy increase in profitability for the April-June quarter of FY27, driven by strong growth in net interest income, improved asset quality and higher operating profit. The lender's shares rallied nearly 10% following the earnings announcement.

Indian Bank posted a standalone net profit of ₹3,273 crore for the first quarter of FY27, up 10% year-on-year (YoY) from ₹2,973 crore in the corresponding period last year, according to the bank's financial results.

The bank's net interest income (NII) — the difference between interest earned and interest paid — rose 17% YoY to ₹7,435 crore, compared with ₹6,359 crore in the year-ago quarter.

Operating Performance Remains Strong

Indian Bank's operating profit increased 16.5% to ₹5,557 crore during the quarter from ₹4,770 crore a year earlier, while other income rose 8% to ₹2,633 crore.

The bank's profitability metrics also improved. Domestic net interest margin (NIM) edged up to 3.41%, compared with 3.35% in both the corresponding quarter last year and the preceding quarter.

Return on assets improved to 1.34%, while earnings per share (EPS) stood at ₹24.92.

The lender's net worth increased nearly 14% YoY to ₹68,793 crore, while its capital adequacy ratio stood at 17.80%. Total advances grew around 14% to ₹6.84 lakh crore, as per The Economic Times (ET).

Asset Quality Improves Further

Indian Bank continued to strengthen its asset quality during the quarter. Gross non-performing assets (GNPA) declined to 1.86%, compared with 3.01% a year ago and 1.98% in the March quarter.

The gross NPA amount fell nearly 30% YoY to ₹12,710 crore, while the net NPA ratio remained stable at 0.15%, with net NPAs declining to ₹990 crore.

The bank also reported an improvement in its slippage ratio, which eased to 0.77% in June 2026 from 0.94% a year earlier. Its credit-deposit ratio rose to 81.06%, while the yield on investments stood at 6.96%.

Higher Provisions Despite Earnings Growth

Despite stronger earnings, Indian Bank's provisions rose significantly on an annual basis. Total provisions increased 73% YoY to ₹1,196 crore from ₹691 crore, although they declined 2.5% sequentially from ₹1,225 crore in the previous quarter.

The lender reportedly made incremental provisions of ₹731 crore on standard assets, set aside ₹345 crore towards risks arising from the West Asia conflict, and created an additional ₹1,000 crore provision for potential expected credit loss impact, as per NDTV Profit.

Indian Bank shares traded at around ₹867.80 after the results were announced. The stock has gained over 8% in the past week, around 4% over the past month and has delivered returns of approximately 37% over one year.