Indian Bank share price spikes 9% post Q1 results; here's why
Indian Bank said its domestic net interest margin (NIM) improved to 3.41 epr cent in June 2026 quarter from 3.35 per cent in June 2025 quarter.
- Jul 10, 2026,
- Updated Jul 10, 2026 1:21 PM IST
In a knee-jerk reaction to better-than-expected June quarter results, shares of Indian Bank Ltd surged 9 per cent in Friday's trade, trimming the PSU lender's three-month slide to 10.78 per cent. Indian Bank said its net profit jumped 10.09 per cent YoY to Rs 3,273 crore in the June quarter compared with Rs 2,973 crore in the corresponding quarter last year. Net interest income (NII) for the quarter rose 16.92 per cent YoY to Rs 7,435 crore in the June quarter against Rs 6,359 crore YoY.
The stock gained as Indian Bank said its domestic net interest margin (NIM) improved to 3.41 epr cent in June 2026 quarter from 3.35 per cent in June 2025 quarter.
Indian Bank reported an improvement in its operating efficiency during June 2026, with the cost-to-income ratio declining 98 basis points to 44.80 per cent. The bank's cost of deposits fell 34 basis points to 4.80 per cent from 5.14 per cent a year ago, while the cost of funds declined 40 basis points to 4.83 per cent from 5.23 per cent. Yield on investments stood at 6.96 per cent.
Overall, operating profit improved 16.50 per cent YoY to Rs 5557 crore in the first quarter against Rs 4,770 crore in the first quarter of last year.
The lender's business growth remained healthy, with gross advances rising 13.89 per cent year-on-year to Rs 6,84,623 crore in June 2026 from Rs 6,01,147 crore in the year-ago period. Retail, Agriculture and MSME (RAM) advances increased 14.80 per cent to Rs 4,16,992 crore from Rs 3,63,221 crore, with the segment contributing 66 per cent to gross domestic advances. Retail, agriculture and MSME advances grew 18.74 per cent, 9.96 per cent and 17.03 per cent year-on-year, respectively, while home loans, including mortgages, rose 13.36 per cent.
Priority sector advances stood at Rs 2,36,720 crore, accounting for 45.36 per cent of adjusted net bank credit, comfortably above the regulatory requirement of 40 per cent. Total deposits increased 13.47 per cent year-on-year to Rs 8,44,578 crore from Rs 7,44,289 crore. The domestic CASA ratio improved to 39.73 per cent from 38.97 per cent a year ago, while the credit-deposit ratio rose to 81.06 per cent from 80.77 per cent.
In a knee-jerk reaction to better-than-expected June quarter results, shares of Indian Bank Ltd surged 9 per cent in Friday's trade, trimming the PSU lender's three-month slide to 10.78 per cent. Indian Bank said its net profit jumped 10.09 per cent YoY to Rs 3,273 crore in the June quarter compared with Rs 2,973 crore in the corresponding quarter last year. Net interest income (NII) for the quarter rose 16.92 per cent YoY to Rs 7,435 crore in the June quarter against Rs 6,359 crore YoY.
The stock gained as Indian Bank said its domestic net interest margin (NIM) improved to 3.41 epr cent in June 2026 quarter from 3.35 per cent in June 2025 quarter.
Indian Bank reported an improvement in its operating efficiency during June 2026, with the cost-to-income ratio declining 98 basis points to 44.80 per cent. The bank's cost of deposits fell 34 basis points to 4.80 per cent from 5.14 per cent a year ago, while the cost of funds declined 40 basis points to 4.83 per cent from 5.23 per cent. Yield on investments stood at 6.96 per cent.
Overall, operating profit improved 16.50 per cent YoY to Rs 5557 crore in the first quarter against Rs 4,770 crore in the first quarter of last year.
The lender's business growth remained healthy, with gross advances rising 13.89 per cent year-on-year to Rs 6,84,623 crore in June 2026 from Rs 6,01,147 crore in the year-ago period. Retail, Agriculture and MSME (RAM) advances increased 14.80 per cent to Rs 4,16,992 crore from Rs 3,63,221 crore, with the segment contributing 66 per cent to gross domestic advances. Retail, agriculture and MSME advances grew 18.74 per cent, 9.96 per cent and 17.03 per cent year-on-year, respectively, while home loans, including mortgages, rose 13.36 per cent.
Priority sector advances stood at Rs 2,36,720 crore, accounting for 45.36 per cent of adjusted net bank credit, comfortably above the regulatory requirement of 40 per cent. Total deposits increased 13.47 per cent year-on-year to Rs 8,44,578 crore from Rs 7,44,289 crore. The domestic CASA ratio improved to 39.73 per cent from 38.97 per cent a year ago, while the credit-deposit ratio rose to 81.06 per cent from 80.77 per cent.