(THE NEWSMAN OF INDIA.COM)
Chennai, May 4, 2025 — Public sector lender Indian Bank reported a robust performance in the January-March quarter of the financial year 2024-25, posting a 32% year-on-year (YoY) rise in standalone net profit to ₹2,956 crore. The figure is a substantial increase from ₹2,247 crore recorded in the same quarter of the previous fiscal year.

The bank’s performance underscores its improved asset quality, efficient cost management, and growing interest income, amid a cautiously optimistic banking environment in India.

Interest income for the quarter rose 8.4% YoY to ₹15,856 crore, up from ₹14,624 crore in the same quarter last year. This steady growth in interest income reflects Indian Bank’s expanding loan book and higher yields on advances, contributing positively to the overall earnings.

A key highlight of the quarterly results was the significant drop in provisions for bad loans, which declined 36% YoY to ₹794.60 crore, compared to ₹1,247.75 crore a year ago. The decline in provisioning suggests improved asset quality and reduced stress in the bank’s loan portfolio.

Corroborating this trend, Indian Bank’s gross non-performing asset (NPA) ratio improved markedly to 3.09% in Q4 FY25 from 3.95% in the corresponding period last year. The 86 basis point reduction in NPAs is a testament to the bank’s strengthened risk management practices and ongoing recovery efforts.

In a move that further bolstered investor sentiment, Indian Bank’s board declared a dividend of ₹16.25 per share, translating to 162.50% of the paid-up equity capital for FY25. The record date for the dividend has been fixed for June 10, 2025, and the proposal will be subject to shareholder approval during the bank’s 19th Annual General Meeting (AGM) scheduled on June 17, 2025.

Despite the strong quarterly results, Indian Bank’s shares closed 1.19% lower at ₹558.10 on Friday, May 2, ahead of the earnings announcement. The marginal dip comes in the backdrop of a broader market correction but does not reflect the bank’s long-term stock performance.

Over the last five years, Indian Bank shares have delivered a staggering return of over 972%, making it one of the top-performing PSU bank stocks. Over the past year alone, the stock has appreciated by 2.32%, with a 7.55% gain in 2025 year-to-date. The stock reached its 52-week high of ₹626.35 on June 3, 2024, and hit a low of ₹474.05 on January 13, 2025.

As of May 2, 2025, Indian Bank’s market capitalisation stood at ₹75,174.06 crore, reflecting strong investor confidence and the bank’s improved fundamentals.

With consistent earnings growth, better asset quality, and a shareholder-friendly dividend policy, Indian Bank appears well-positioned to sustain its momentum into the coming quarters. Analysts will be closely watching its next steps as it navigates rising competition in the public sector banking space and evolving macroeconomic conditions.