Solid Momentum for Indian Bank in Q1FY26

 Please share some key highlights of your Bank’s recent Quarterly Results for Q1 of FY25-26. 

■ Business Growth: The Bank’s total business grew by 10.25 per cent year-on-year, reaching ₹13.45 lakh crore. Advances increased by 11.50 per cent to ₹6.01 lakh crore, with significant growth in the Retail (16.56 per cent), Agriculture (16.40 per cent), and MSME (14.45 per cent) segments. Deposits increased by 9.26 per cent to ₹7.44 lakh crore.
■ Profitability: The net profit of the Bank is up by 23.69 per cent year-on-year and operating profit up by 5.97 per cent year-onyear for the quarter ending June 25. The Bank’s Return on Assets (ROA) and Return on Equity (ROE) stood at 1.34 per cent (up by 14 basis points year-on-year) and 20.26 per cent (up by 50 basis points year-on-year).
■ Asset Quality: GNPA decreased by 8 basis points quarter-onquarter to 3.01 per cent in June 2025 from 3.09 per cent in March 2025, NNPA reduced by 1 basis point to 0.18 per cent in June 2025 from 0.19 per cent in March 2025, reflecting effective control on fresh slippages with the strong Provision Coverage Ratio (PCR) of 98.20 per cent.
■ Capital Adequacy: The Bank maintained a healthy Capital to Risk-weighted Assets Ratio (CRAR) of 17.80 per cent with Tier-I capital ratio of 15.74 per cent. 

Net Interest Margins (NIM) have been a key focus for the banking sector. What is your outlook on NIM for FY 26, considering the latest RBI cut? 

Yes, it has been a focus area for the entire banking sector in view of the recent rate cut by RBI. Our NIM (domestic) stands at 3.35 per cent in Q1 FY 26, which is 13 basis points down from March 2025. When the RBI reduces the repo rate, we have to pass on the benefit to borrowers, especially those with repo-linked loans — in our Bank, that’s about 40 per cent of our loan book. However, the reduction in deposit rates does not happen as swiftly. Only when the repricing takes place for the existing deposit book, the net interest margins improve. In the June MPC meeting, RBI reduced the repo rate by 50 basis points, so naturally, margins decreased. However, our Bank will maintain the guidance on NIM within the range of 3.15 per cent to 3.30 per cent for FY 26. 

What’s the strategy to accelerate CASA ratio as it is a concern for the entire banking sector? 

Recently, increasing CASA deposits has been a major concern for the banking industry. Our domestic CASA Ratio stood at 38.97 per cent as on June 30, 2025, which was marginally lower than March 2025. In order to address this, our Bank recently launched new premium products which are designed and introduced by benchmarking with the best in the industry. These products will cover all the segments of customers: Ind Shakti for Women, Ind Aspire for Micro, Small and Medium Enterprises, Ind Sampoorna Plus for the Salaried Class, Ind Pro for Professionals, Ind Pension Prime for pensioners. The products are designed with various benefits to attract stable CASA deposits. Our Bank has also launched a unique concept ‘Virtual Banking Experience (VBX)’ for digitally savvy customers. The Bank has presently more than 2 crore digitally active customers who will be offered personalised services, rewards, and digital-first features, without the hassle of visiting any branch. This will not only improve customer satisfaction but also encourage higher CASA balances. Additionally, some other measures viz. special campaigns for Revival of Inoperative Accounts, Affluencebased customer tiering & Activation and engagement Journey for NTB Customers, etc., are taken for improving the CASA ratio. 

Your digital initiatives are gaining traction. What are the key digital initiatives launched by the Bank recently and how is the Bank expecting to gain from it? 

The Bank is committed to driving digital innovation, strengthening financial inclusion, and enhancing customer experience. The Bank’s focus remains on empowering MSMEs, farmers, and underserved communities through accessible and technology-enabled banking solutions. As on June 30, 2025, our Bank has launched 132 digital journeys, utilities, and processes. Recently, our Bank has launched the MSME Customer App ‘Ind Smart Biz’, a one-stop solution for all banking requirements of MSMEs. Similarly, digital journeys for KCC have been launched in the states where land records are digitised. The Bank has also launched a seamless UPI-based payment solution ‘Ind UPI’. The digital banking channel has generated business of ₹57,955 crore during Q1 FY 26 with 58 per cent growth on a year-on-year basis. The digital adoption has gone up substantially and if we see sector-wise, Retail business has grown from 69 per cent to 87 per cent in the past one year, Agri business from 90 per cent to 96 per cent, and the Bank is putting good efforts to increase the MSME business, which is at present 78 per cent. The Bank has also onboarded itself on the ULI platform and garnered a business of around ₹6,350 crore. 

How do you feel about this recognition as the Best CFO – Banking Sector (Large Cap category)? 

It is a moment of pride. This recognition is not an individual achievement but reflects the dedication, resilience, and collaboration of the entire team of Indian Bank. Under the leadership and guidance of our MD & CEO and Executive Directors, our Bank has demonstrated consistent performance, continuing its positive growth trajectory and strengthening its balance sheet and customer offerings.