Chennai : Indian Bank reported a strong financial performance for the first quarter of FY2026-27, registering a 10.09% year-on-year increase in net profit to ₹3,273 crore, backed by healthy credit growth, improved asset quality and continued momentum in digital banking. The bank’s total business expanded by 13.66% year-on-year to ₹15.29 lakh crore, reflecting broad-based growth across lending and deposit portfolios.
Gross advances grew 13.89% to ₹6.85 lakh crore, while total deposits increased 13.47% to ₹8.45 lakh crore. The bank maintained a healthy domestic CASA ratio of 39.73%, supporting stable and low-cost funding.
Indian Bank’s operating performance remained strong, with Operating Profit rising 16.50% to ₹5,557 crore and Net Interest Income (NII) increasing 16.92% to ₹7,435 crore. Domestic Net Interest Margin (NIM) improved to 3.41%, while the Cost-to-Income Ratio declined to 44.80%, highlighting improved operational efficiency.
Asset quality continued to strengthen as the Gross Non-Performing Asset (GNPA) ratio declined to 1.86% from 3.01% a year earlier, while Net NPA improved to 0.15%. Provision Coverage Ratio remained robust at 98.22%, underlining the bank’s prudent risk management practices.
Retail, Agriculture and MSME (RAM) advances registered healthy growth of 14.80%, reaching ₹4.17 lakh crore, accounting for 66% of domestic advances. Retail advances grew 18.74%, MSME advances rose 17.03%, while agriculture lending increased 9.96% year-on-year.
Digital banking continued to gain traction with 95% of customer transactions being conducted digitally. During the quarter, the bank generated ₹67,327 crore of business through digital channels and expanded its digital ecosystem by launching 158 digital journeys and utilities. Mobile banking users increased by 22% to 2.48 crore, while UPI users rose 21% to 2.77 crore, reflecting strong customer adoption of digital services.
The bank also strengthened its nationwide presence with 6,003 domestic branches, 5,676 ATMs and BNAs, and 17,314 Business Correspondents, along with three overseas branches and an International Banking Unit at GIFT City.
During the quarter, Indian Bank received several industry recognitions, including the Best PSB Award 2024-25 by Financial Express, the Golden Peacock Award for Excellence in Artificial Intelligence 2026, the APY Annual Award of Excellence, and the Best Data Quality Award from CIBIL, further reinforcing its leadership in technology-driven banking.
The bank said it remains focused on becoming the preferred financial partner for customers through operational excellence, disciplined portfolio management and technology-led banking solutions, while continuing to deliver sustainable and profitable growth.