Indian Bank (INDIANB) investor relations material

Executive summary

• Total business grew 13.34% YoY to ₹14.30 trillion, with deposits at ₹7.91 trillion (up 12.62% YoY) and advances at ₹6.39 trillion (up 14.24% YoY); CASA ratio at 39.08% as of December 2025.

• Net profit for Q3FY26 rose 7.33% YoY to ₹3,061 crore, with operating profit up 5.79% YoY to ₹5,024 crore; net interest income increased 7.50% YoY to ₹6,896 crore.

• Digital business footprint expanded 66% YoY, with digital transactions at 94% of total transactions.

• Asset quality improved, with GNPA at 2.23% (down 103 bps YoY) and NNPA at 0.15% (down 6 bps YoY); provision coverage ratio at 98.28%.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025, were reviewed and approved by the Board on January 22, 2026.

Financial highlights

• Interest income for Q3FY26 grew 8.50% YoY to ₹17,098 crore; non-interest income rose 19.24% YoY to ₹2,566 crore.

• Cost-to-income ratio at 46.90%, credit cost at 0.21%, and return on assets at 1.30% for Q3FY26.

• Standalone capital adequacy ratio (Basel III) at 16.58%; consolidated at 16.76%.

• Earnings per share (EPS) for Q3FY26 at ₹90.92; book value per share at ₹484.00.

• Gross NPA reduced to 2.23%, net NPA at 0.15%.

Outlook and guidance

• Guidance to maintain gross NPA below 2% and net NPA at or below 0.5%.

• Credit growth expected to sustain at 12-13%, with a cautious approach to risk.

• Continued focus on digital transformation, financial inclusion, and expanding digital business, with digital business targeted to reach 50% of total business in 2-3 years.

• NIM and ROA expected to remain strong, though minor moderation possible due to deposit repricing and rate cuts.

• Strong growth in digital lending products, including vehicle, home, MSME, and jewel loans.