Indian Bank (INDIANB) Q1 24/25 earnings summary

Executive summary

• Net profit for Q1 FY25 rose 41% year-over-year to ₹2,403 crore, with operating profit up 9% YoY to ₹4,502 crore.

• Advances grew 12% YoY to ₹5.39 lakh crore, and deposits increased 10% YoY to ₹6.81 lakh crore.

• Asset quality improved: Gross NPA fell to 3.77% (down 170 bps YoY), Net NPA to 0.39% (down 31 bps YoY).

• Return on Equity (RoE) reached 19.76% and Return on Assets (RoA) improved to 1.20%.

• Digital transactions now account for 90% of total, with mobile and UPI users up 33% and 30% YoY, respectively.

Financial highlights

• Net Interest Income (NII) increased 8% YoY to ₹6,178 crore; non-interest income up 11% YoY to ₹1,906 crore.

• Fee income grew 17%; bad debt recovery at INR 504 crore, up 180% YoY.

• Cost of deposits rose to 5.05% (up 45 bps YoY); yield on advances at 8.69%.

• CASA ratio at 41%; cost-to-income ratio improved to 44%.

• Earnings per share (EPS) at ₹71.37; book value per share at ₹369.91.

Outlook and guidance

• Deposit growth guidance of 8-10% achieved; advances growth at 12% within 11-13% guidance.

• Recovery target for FY25 is INR 7,000 crore; INR 1,937 crore achieved in Q1.

• Margins expected to remain above 3.4%, with cost of deposits likely to rise slightly.

• ROA expected to continue improving from current 1.20%; credit cost to remain below 0.71%.

• Surpassed all RBI-mandated priority sector lending targets.