Indian Bank (INDIANB) Q3 24/25 earnings summary

Executive summary

• Total business grew 8.33% YoY to ₹12.61 trillion, with deposits up 7.34% YoY and advances up 9.61% YoY; RAM segment grew 12.79% YoY, retail at 16.16%, agriculture at 14.04%, and MSME at 8.43%.

• Net profit for Q3 FY25 rose 34.6% YoY to ₹2,852 crore; nine-month net profit at ₹7,962 crore; consolidated net profit for Q3 FY25 reached ₹2,909.73 crore.

• Operating profit for Q3 FY25 increased 15.91% YoY to ₹4,749 crore; NII for Q3 FY25 grew 10.32% YoY to ₹6,415 crore.

• Digital migration reached 92% (up 5% YoY), with digital business volume up 125% YoY; 89 lakh accounts opened digitally, a 160% YoY increase.

• Maintained strong asset quality with Gross NPA at 3.26% (down 121 bps YoY) and Net NPA at 0.21% (down from 0.53% YoY); PCR at 98.09%.

Financial highlights

• CASA ratio maintained at 40%; retail term deposits grew 9% YoY.

• ROA improved to 1.39% (up 28 bps YoY); ROE at 21% (up 108% YoY); cost-to-income ratio reduced to 44.56%.

• Earnings per share for Q3 FY25 at ₹84.70, up from ₹67.12 YoY.

• Credit-deposit ratio at 79.63%; CRAR at 15.92% as of Dec'24.

• Standalone total income for Q3 FY25 was ₹17,912.03 crore, up from ₹16,099.26 crore YoY; consolidated total income for Q3 FY25 was ₹18,167.54 crore.

Outlook and guidance

• Deposit growth guidance of 8%-10% and advances growth of 11%-13% for FY25 reaffirmed.

• Board approved capital plan for FY25: ₹5,000 crore equity and ₹2,000 crore AT-1/Tier-II; focus on digital expansion and asset quality.

• CASA ratio target of 40% to be maintained; NIM guidance of 3.40%-3.50%; ROA guidance of 1.20% exceeded.

• Recovery guidance of ₹7,000 crore for the year, with ₹5,800 crore already achieved.

• No downward revision in credit growth or margin guidance; Q4 expected to see higher demand and disbursement.