- Indian Bank’s Q1 net profit rose 10% to Rs 3,273 crore year-on-year
- Net interest income increased 17% to Rs 7,435 crore in the same quarter
- Gross non-performing assets improved to 1.86% from 1.98% last quarter
Indian Bank shares climbed nearly 10% on Friday after the state-run lender reported higher net profit, stronger net interest income and an improvement in asset quality for the first quarter of FY27.
The stock rose to Rs 869.20 on the NSE from its previous close of Rs 793.15, gaining more than 76 points after the earnings announcement.
The quarterly results showed growth in income and profitability, while gross non-performing assets declined from the previous quarter. The bank, however, set aside higher provisions compared with the year-ago period.
Profit, income rise in Q1
Indian Bank on Friday reported a 10% year-on-year increase in net profit to Rs 3,273 crore for the quarter ended June 30, 2026, compared with Rs 2,973 crore a year earlier.
Net interest income rose 17% to Rs 7,435 crore from Rs 6,359 crore in the corresponding quarter last year. Other income increased 8% to Rs 2,633 crore from Rs 2,439 crore.
Operating profit rose 16.5% year on year to Rs 5,557 crore from Rs 4,770 crore.
The bank increased provisions to Rs 1,196 crore during the quarter from Rs 691 crore a year earlier. However, provisions declined 2.5% from Rs 1,225 crore reported in the January-March quarter.
ALSO READ: Indian Bank Q1 Result: Net Profit Rises 10% To Rs 3,273 Crore, Gross NPA Drops To 1.86%
Asset quality improves
Indian Bank reported an improvement in asset quality during the quarter.
Gross non-performing assets declined to 1.86% from 1.98% in the previous quarter, while net non-performing assets remained unchanged at 0.15%.
Share price performance
Indian Bank shares have remained in focus beyond Friday's rally.
The stock has gained more than 38% over the past year, compared with a 20.5% rise in the Nifty PSU Bank index during the same period.
At the previous close, the bank's market capitalisation stood at Rs 1,17,064.64 crore. The stock was trading at a price-to-earnings ratio of 9.32.
Out of 14 analysts tracking the company, 12 maintain a 'buy' rating, one maintain a "hold", and one maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 987.79 implies an upside of 13.8%
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