Indian Bank standalone profit after tax increased 7.3% to ₹3,061.4 crore in the third quarter of fiscal 2026, as against ₹2,852.36 crore in the year ago period.
The bank’s net interest income (NII) increased 7.5% to ₹6,896 crore in the reporting quarter as against ₹6,415 crore in the corresponding period last year. A lot of the increase has to do with the increase in Retail , Agriculture and MSME (RAM) loans in the quarter. The share of all the three put together increased to 66% in the quarter-ended December 2025 from about 64% in the year-ago period. The bank has kept personal loan books lean and further reduced their exposure by 9.8% to ₹6,706 crore. The bank has made a “conscious effort” to keep it low, said Binod Kumar, CEO and MD of Indian Bank, in an interview with The Hindu. The decision becomes important in the context of rising asset quality risks in the segment. The net interest margin of the bank reduced slightly by 0.17% to 3.4% in Q3FY26. The Gross Non-Performing Assets (NPA) in share of total advances reduced to 2.23% in the recently concluded quarter from 3.3% in the year ago period. The NNPA reduced to 0.15% from 0.21%.
Speaking about the stagnation in the increase in deposits in the banking sector as a whole, Mr. Kumar said that this was due to the increasing avenues of investments for depositors and was part of the transition to a developed economy where deposits are diversified.
Published – January 22, 2026 09:24 pm IST
