Indian Bank Q4 profit soars 32% to Rs 2,956 crore helped by improvement in core income

New Delhi: State-owned Indian Bank on Saturday reported a 32 percent jump in net profit to Rs 2,956 crore for the March quarter of 2024-25, helped by a decline in bad loans and a rise in core income.

The Chennai-based lender had earned a net profit of Rs 2,247 crore in the year-ago period.

During the quarter, the bank's total income increased to Rs 18,599 crore from Rs 16,887 crore a year ago, Indian Bank said in a regulatory filing.

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Interest income grew to Rs 15,856 crore from Rs 14,624 crore in the fourth quarter of the previous financial year. Net Interest Income (NII) in the quarter also improved to Rs 6,389 crore from Rs 6,015 crore in the same period a year ago.

On the asset quality front, the bank's gross Non-Performing Assets (NPAs) moderated to 3.09 percent of gross advances as compared to 3.95 percent by the end of March 2024.

Similarly, Net NPAs came down to 0.19 percent of the net advances over 0.43 percent at the end of 2024.

Provision Coverage Ratio of the bank rose to 98.10 percent as of March 31, 2025, from 96.34 percent at the end of the previous year.

The bank's capital adequacy ratio rose to 17.94 percent from 16.44 percent at the end of FY24.

For the entire financial year 2024-25, the bank reported a 35 percent increase in profit at Rs 10,918 crore as against Rs 8,063 crore in the previous year.

The bank's total income during the financial year rose to Rs 71,226 crore as against Rs 63,482 crore a year ago.

NII rose to Rs 25,176 crore from Rs 23,274 crore in the previous year. Net Interest Margin in the year stood at 3.51 percent for the year ended March 2025.

The bank's board has recommended a dividend of 16.25 paise per equity share of the face value of Rs 10 each for 2024-25 subject to the approval of the shareholders at the ensuing Annual General Meeting.

The board has also approved raising up to Rs 7,000 crore through a mix of equity and bonds during the ongoing financial year. Of this, the bank has taken approval for raising equity capital aggregating upto Rs 5,000 crore (including premium) through QIP or Rights Issue or in combination.

Besides, it proposes to raise up to Rs 2,000 crore through issuance of Basel III Compliant AT-1 Perpetual Bonds/Tier 2 Bonds in one or more tranches during the current or subsequent financial years based on the requirement, it added.

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