New Delhi, State-owned Indian Bank on Saturday reported that its net profit for the March 2024-25 quarter rose 32 percent to Rs 2,956 crore, led by reduction in bad loans and rise in core income.
The Chennai-based lender had reported a net profit of Rs 2,247 crore in the same period a year ago.
During the quarter, the bank’s total income rose to Rs 18,599 crore from Rs 16,887 crore a year ago, Indian Bank said in a regulatory filing.
Interest income rose to Rs 15,856 crore from Rs 14,624 crore in the fourth quarter of the previous fiscal. Net interest income (NII) in the quarter also rose to Rs 6,389 crore from Rs 6,015 crore in the same period a year ago.
On the asset quality front, the bank’s gross non-performing assets (NPAs) came down to 3.09 per cent of gross advances compared to 3.95 per cent at the end of March 2024. Similarly, net NPAs declined to 0.19 percent from 0.43 percent of net advances at the end of 2024.
The bank’s provision coverage ratio improved to 98.10 per cent as of March 31, 2025, from 96.34 per cent at the end of the previous year. The bank’s capital adequacy ratio improved to 17.94 percent from 16.44 percent at the end of FY24.
For the full year 2024-25, the bank reported a profit of Rs 10,918 crore, up 35 per cent from Rs 8,063 crore in the previous year. The bank’s total income during the financial year increased to Rs 71,226 crore as against Rs 63,482 crore a year ago.
NII increased to Rs 25,176 crore from Rs 23,274 crore last year. Net interest margin for the year ended March 2025 stood at 3.51 percent this year.
The board of the bank has recommended a dividend of 16.25 paise per equity share of face value of Rs 10 for 2024-25, subject to the approval of the shareholders at the forthcoming Annual General Meeting.
The board has also approved raising up to Rs 7,000 crore through a mix of equity and bonds during the current financial year. Out of this, the bank has approved raising equity capital of up to Rs 5,000 crore (including premium) through QIP or rights issue or a combination of these. Further, it proposes to raise up to Rs 2,000 crore by issuing Basel III compliant AT-1 perpetual bonds/Tier 2 bonds in one or more tranches during the current or subsequent financial years, depending on the requirement.
