Indian Bank has announced a robust financial performance for the second quarter of fiscal year 2025, showcasing significant growth in net profit and improvement in asset quality. The state-owned bank reported a 36% surge in net profit, reaching ₹2,707 crore for the quarter ended September 2024. This is a substantial increase compared to the ₹1,988 crore profit recorded during the same period last year.

The impressive performance was attributed to an increase in operating profit and net interest income (NII). The bank's operating profit rose by 10% to ₹4,728 crore as of September 30, 2024, compared to ₹4,303 crore in the corresponding quarter of the previous year. NII also saw an increase of 8% year-on-year, climbing to ₹6,194 crore in September 2024 from ₹5,741 crore in the same quarter last year. Additionally, total income increased to ₹17,770 crore during the quarter under review, from ₹15,736 crore in the same period last year. Interest income rose to ₹15,348 crore, up 12% from ₹13,743 crore in the previous year.

Notably, Indian Bank has made significant strides in improving its asset quality. Gross Non-Performing Assets (NPAs) decreased to 3.48% as of September 30, 2024, a significant reduction from 4.97% a year ago. Net NPAs also saw a decrease to 0.27% from 0.60% in the same period last year. The Provision Coverage Ratio (PCR) improved to 97.60% from 95.64% in September 2023. S L Jain, MD & CEO of Indian Bank, highlighted the considerable improvement in NPA figures since the amalgamation, with gross NPA declining from 11.2% to 3.48% and net NPA decreasing from 4.2% to 0.27%.

Other key financial metrics include a 27% year-on-year increase in non-interest income to ₹2,422 crore. Recoveries from bad loans also rose by 45% to ₹732 crore in Q2FY25 from ₹508 crore in Q2FY24. Furthermore, the bank's capital adequacy ratio improved by 102 basis points to 16.55%, compared to 15.53% at the end of the second quarter of the previous fiscal year.

The bank's total business reached ₹12.44 lakh crore, with total deposits accounting for ₹6.93 lakh crore. The Current Account Savings Account (CASA) stood at ₹2.69 lakh crore. However, the CASA ratio experienced a slight decrease to 38.86% in September 2024 from 40.11% a year ago. Despite this, Indian Bank aims to maintain a CASA ratio of 40% in FY25.

Looking ahead, Indian Bank is focused on delivering value-added and customized solutions through empowered employees and the use of technology to meet customer needs. The bank aims to grow deposits by 8-10% and expects the Net Interest Margin (NIM) to be about 3.41% in FY25.