Indian Bank Q3 FY26 Results: Net Profit Rises 7.3% to ₹3,061 Crore
Mumbai: Indian Bank announced its unaudited financial results for the third quarter (Q3) and nine months of the financial year 2025-26, ending December 31, 2025. The Board of Directors approved the results in a meeting held today. The bank reported a steady growth in profitability and a significant strengthening of its balance sheet, marked by a notable reduction in bad loans.
Key Financial Highlights: Q3 FY26 vs. Q3 FY25 (Standalone)
| Parameter | Q3 FY26 (₹ Crore) | Q3 FY25 (₹ Crore) | % Change |
|---|---|---|---|
| Net Profit | 3,061 | 2,852 | +7.3% |
| Total Income | 19,663 | 17,912 | +9.8% |
| Net Interest Income (NII) | 6,896 | 6,415 | +7.5% |
| Operating Profit | 5,024 | 4,749 | +5.8% |
| Gross NPA Ratio | 2.23% | 3.26% | -103 bps |
| Net NPA Ratio | 0.15% | 0.21% | -6 bps |
| Provision Coverage Ratio (PCR) | 98.28% | - | - |
| Capital Adequacy Ratio (CRAR) | 16.58% | 15.92% | +66 bps |
| Earnings Per Share (EPS) (₹) | 22.73 | 21.18 | - |
NII derived as Interest Earned (17,098) minus Interest Expended (10,202).
Nine-Month Performance (Apr-Dec 2025) – Standalone
For the nine months ended December 31, 2025, the bank reported a Net Profit of ₹9,053 crore, a robust increase from ₹7,962 crore in the same period last year. Total Income stood at ₹57,461 crore.
Segment-Wise Performance (Q3 FY26)
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Retail Banking remained the largest contributor to revenue (₹8,170 crore) and segment profit (₹1,702 crore).
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Treasury Operations reported a segment profit of ₹1,677 crore.
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Corporate/Wholesale Banking posted a segment profit of ₹1,439 crore.
Asset Quality: A Standout Positive
The bank demonstrated remarkable improvement in asset quality:
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Gross NPAs reduced substantially to ₹14,268 crore (2.23%) from ₹18,208 crore (3.26%) a year ago.
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Net NPAs stood at a minimal ₹968 crore (0.15%).
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The high Provision Coverage Ratio (PCR) of 98.28% (including technical write-offs) indicates strong resilience.
Capital Position
The bank's Capital Adequacy Ratio (Basel III) remained healthy at 16.58% as of December 31, 2025, with a Common Equity Tier 1 (CET1) ratio of 14.54%.
Consolidated Results
On a consolidated basis, which includes subsidiaries, associates, and joint ventures:
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Q3 Net Profit: ₹3,147 crore.
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Nine-Month Net Profit: ₹8,531 crore.
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Consolidated Capital Adequacy Ratio: 16.76%.
Key Developments & Notes
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Exceptional Item: The consolidated results for the nine-month period include an exceptional gain of ₹766.59 crore related to the amalgamation of Saptagiri Grameena Bank.
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Bond Repayments: During the quarter, the bank repaid AT1 Bonds of ₹2,000 crore (call option) and Tier 2 Bonds of ₹1,000 crore (on maturity).
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No Defaults: The bank confirmed no defaults on loans or debt securities as of December 31, 2025.
Management & Approval
The results were reviewed by the Audit Committee and approved by the Board of Directors. The statutory auditors have issued a limited review report on the financial results.
About Indian Bank: Indian Bank is a major public sector bank with a nationwide presence. The Government of India holds a 73.84% stake in the bank.