Indian Bank reports 32% profit jump in Q4 2024-25, with improved asset quality and increased total income.
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State-owned Indian Bank on Saturday reported a 32 per cent jump in net profit to ₹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 ₹2,247 crore in the year-ago period.
During the quarter, the bank’s total income increased to ₹18,599 crore from ₹16,887 crore a year ago, Indian Bank said in a regulatory filing.
Interest income grew to ₹15,856 crore from ₹14,624 crore in the fourth quarter of the previous financial year. Net Interest Income (NII) in the quarter also improved to ₹6,389 crore from ₹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 per cent of gross advances as compared to 3.95 per cent by the end of March 2024.
Similarly, Net NPAs came down to 0.19 per cent of the net advances over 0.43 per cent at the end of 2024.
Provision Coverage Ratio of the bank rose to 98.10 per cent as of March 31, 2025, from 96.34 per cent at the end of the previous year.
The bank’s capital adequacy ratio rose to 17.94 per cent from 16.44 per cent at the end of FY24.
For the entire financial year 2024-25, the bank reported a 35 per cent increase in profit at ₹10,918 crore as against ₹8,063 crore in the previous year.
The bank’s total income during the financial year rose to ₹71,226 crore as against ₹63,482 crore a year ago.
NII rose to ₹25,176 crore from ₹23,274 crore in the previous year. Net Interest Margin in the year stood at 3.51 per cent 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 ₹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 ₹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 ₹5,000 crore (including premium) through QIP or Rights Issue or in combination.
Besides, it proposes to raise up to ₹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.
Published on May 3, 2025
