Indian Bank Reports ₹2,852 Crore Net Profit in Q3 FY25, Strengthens Financial Position with ₹10,000 Crore Bond Issuance

Chennai, India – January 29, 2025 – Indian Bank (NSE: INDIANB, BSE: 532814) has posted strong Q3 FY25 earnings, reporting a net profit of ₹2,852.36 crore, reflecting a 34.6% year-on-year growth. The bank also strengthened its capital base by issuing ₹10,000 crore worth of Long-Term Infrastructure Bonds in two tranches, enhancing its ability to support infrastructure financing.

Financial Highlights: Q3 FY25 Performance​

Standalone Financial Performance (₹ in Crore)​

• Total Income: ₹17,912.03 crore (up 11.3% YoY from ₹16,099.26 Crore in Q3 FY24).
• Net Interest Income (NII): ₹6,414.72 crore (up 13.1% YoY).
• Operating Profit: ₹4,749.42 crore (up 15.9% YoY from ₹4,097.19 Crore).
• Net Profit: ₹2,852.36 crore (up 34.6% YoY from ₹2,119.35 Crore).
• Earnings Per Share (EPS): ₹21.18 per share (up from ₹16.78 in Q3 FY24).

For the nine months ending December 31, 2024:

• Total Income: ₹52,626.48 crore (up 12.9% YoY).
• Net Profit: ₹7,962.22 crore (up 36.9% YoY from ₹5,815.94 Crore).
• Earnings Per Share (EPS): ₹59.11, compared to ₹46.48 in the same period last year.

Asset Quality and Capital Strength​

• Gross Non-Performing Assets (GNPA): ₹18,208.35 crore (GNPA ratio improved to 3.26% from 4.47% YoY).
• Net Non-Performing Assets (NNPA): ₹1,126.86 crore (NNPA ratio improved to 0.21% from 0.53% YoY).
• Provision Coverage Ratio (PCR): 98.09%, reflecting strong risk management.
• Capital Adequacy Ratio (Basel III): 15.92%, ensuring a stable capital structure.

Key Business Segment Performance​

Treasury Operations​

• Revenue: ₹4,307.54 crore (up 10.1% YoY).
• Profit Before Tax (PBT): ₹1,477.79 crore (up 9.9% YoY).

Corporate/Wholesale Banking​

• Revenue: ₹5,609.29 crore (up 0.2% YoY).
• PBT: ₹1,366.68 crore (up 11.6% YoY).

Retail Banking​

• Revenue: ₹7,465.33 crore (up 17.2% YoY).
• PBT: ₹1,709.60 crore (up 26.5% YoY).

₹10,000 Crore Bond Issuance to Fund Infrastructure Growth​

Indian Bank has raised ₹10,000 crore in two tranches to strengthen its lending capacity for infrastructure projects:

• ₹5,000 crore was raised on September 13, 2024, at an annual coupon of 7.24%.
• ₹5,000 crore was raised on October 25, 2024, at an annual coupon of 7.12%.

The funds will be utilized for long-term infrastructure financing, supporting India's growth in renewable energy, highways, and urban development.

Market Position and Growth Strategy​

• Focused growth in Retail and MSME lending, increasing its market share in personal and business banking.
• Improved asset quality, reducing NPA levels while maintaining a strong provision coverage ratio.
• Leveraging digital banking with a dedicated Digital Banking Segment to drive financial inclusion and technology-driven banking.

Investor Takeaways​

• Net Profit surged by 34.6% YoY, reflecting strong operational efficiency.
• ₹10,000 crore bond issuance strengthens long-term financing capability.
• Asset quality improved, with GNPA at 3.26% and NNPA at 0.21%, reducing credit risks.
• Steady EPS growth, making Indian Bank a solid investment choice.

Conclusion​

With record-breaking Q3 FY25 performance, a robust capital structure, and substantial asset quality improvements, Indian Bank is well-positioned for sustained growth. The ₹10,000 crore bond issuance reinforces its commitment to infrastructure financing, further solidifying its role in India's economic expansion.