Net Interest Income increased by 16.9% YoY to ₹7,435 crore in the quarter ended June 2026

Public sector lender Indian Bank on Friday reported a 10 per cent rise in net profit to ₹3,273 crore in the first quarter of FY2027 (Q1FY27) on growth of business. The Chennai-headquartered lender also saw an improvement in asset quality.

Indian Bank reported a total income of ₹20,724 crore during the quarter, up from ₹18,721 crore in the same quarter of FY26. Net Interest Income increased by 16.9 per cent YoY to ₹7,435 crore in the quarter ended June 2026. Domestic Net Interest Margin (NIM) improved to 3.41 per cent in June 2026 from 3.35 per cent in June 2025.

Total business increased by 13.7 per cent, reflecting broad-based momentum across operations.

Total RAM (Retail, Agriculture & MSME) advances grew by 14.8 per cent YoY to ₹4,16,992 crore driven by growth of 18.7 per cent and 17 per cent, respectively, in retail and MSME loans. Total deposits increased by 13.5 per cent YoY and reached to ₹8,44,578 crore as of June 2026, with a 15.3 per cent YoY growth in CASA.

We have beat our own guidance across all parameters, Binod Kumar, MD & CEO, Indian Bank, told media persons. He flagged the CASA growth and growth in RAM advances as key drivers of profit.

CASA growth, especially, has come from a variety of initiatives the bank has taken in recent months, including the set up of a next-gen call centre. “Around 17 lakh inoperative accounts have been converted to operative accounts this quarter and this has brought in about Rs 1,469 crore of balances,” he said.

Power, infrastructure and data centre sectors are aiding the growth of corporate credit of India Bank, which saw a growth of. YoY in Q1FY27. Retail loans was led by housing and auto loans and agri segment slowed as jewel loans tapered.

The bank’s asset quality showed improvement as gross non-performing assets (NPAs) declined to 1.86 per cent of gross advances at the end of the June quarter from 3 per cent a year ago. Similarly, net NPAs, or bad loans, declined to 0.15 per cent, against 0.18 per cent in the year-ago period.

Total business of around ₹67,327 crore has been generated through digital channels during Q1FY27, the bank said in a statement. The number of mobile banking users has grown by 22 per cent YoY, reaching 2.48 crore users.

Published on July 10, 2026