Indian Bank Ltd closed the fourth quarter of FY24 on a high note, showcasing solid business growth, robust profitability, and stronger asset quality. On Friday, April 4, the bank released its Q4 business update, highlighting a 5.1% quarter-on-quarter (QoQ) growth in total business. The lender’s total business jumped to ₹13.25 lakh crore in Q4 from ₹12.61 lakh crore in Q3 FY24, reinforcing its steady momentum.
Deposits and Advances Show Consistent Growth
Indian Bank reported a 5% QoQ rise in total deposits, reaching ₹7.37 lakh crore at the end of Q4. In the previous quarter, deposits stood at ₹7.02 lakh crore. The consistent growth in deposits reflects strong customer trust and the bank’s aggressive deposit mobilization strategies.
On the lending side, gross advances saw a healthy 5.2% sequential rise to ₹5.88 lakh crore, compared to ₹5.59 lakh crore in Q3. The increase in lending indicates sustained credit demand across sectors and Indian Bank’s ability to capture this demand effectively. The combined rise in deposits and advances helped the lender expand its total business by ₹64,000 crore within just three months.
Net Profit Surges 35% Year-on-Year
Indian Bank delivered a strong bottom-line performance in Q4. The net profit rose 35% year-on-year (YoY) to ₹2,852 crore, compared to ₹2,119 crore in the same quarter last year. The surge in profitability reflects better interest income, lower credit costs, and improved operational efficiencies.
The bank benefited from higher core income as net interest income (NII) rose 10.3% to ₹6,415 crore in Q4 from ₹5,814 crore in Q3. The steady growth in NII shows Indian Bank’s ability to manage interest spreads well, despite ongoing market rate fluctuations.
Operating and Net Profit Margins Improve
Indian Bank improved its operational strength, with operating margins climbing to 26.52% in Q4 from 25.45% a year ago. This jump indicates the bank’s improved cost control and better earnings from its core operations.
Meanwhile, the net profit margin increased to 15.92% in Q4 from 13.16% in the corresponding period last year. The improvement in net profit margin demonstrates stronger profitability per rupee of revenue and highlights Indian Bank’s efficiency in converting income into actual profits.
Asset Quality Shows Significant Improvement
The bank made notable progress in cleaning up its balance sheet. Gross non-performing assets (NPAs) dropped to 3.26% in Q4 from 3.48% in Q3. Net NPAs also declined to 0.21% from 0.27% during the same period.
This reduction in bad loans reflects stronger credit underwriting, effective recovery efforts, and prudent risk management. Indian Bank continues to prioritize asset quality, which remains a key performance driver for investors and analysts.
Stock Reaction and Market Outlook
Despite the impressive Q4 performance, shares of Indian Bank Ltd closed slightly lower on April 4. The stock ended at ₹545.95 on the BSE, down by ₹3.30 or 0.60%. The minor dip could reflect profit booking or broader market sentiment, rather than a reaction to the bank’s performance.
Investors have shown increasing interest in PSU banking stocks in recent quarters, and Indian Bank has stayed at the forefront with consistent financial improvement. Market analysts will likely focus on the bank’s strong fundamentals and improving ratios in the coming quarters.
Strong FY24 Finish Positions Bank for FY25
Indian Bank’s strong finish to FY24 sets a solid base for the upcoming fiscal year. The lender has shown steady deposit growth, higher loan disbursals, expanding interest income, and tightening asset quality. With a rising profit trajectory and improving margins, the bank appears well-prepared to navigate FY25 challenges.
Management has stayed focused on driving core earnings, expanding customer reach, and maintaining a low-cost structure. Digital initiatives and branch expansions have also contributed to the bank’s growing footprint across retail and corporate segments.
Sector Context: PSU Banks Regaining Investor Trust
Indian Bank’s strong performance aligns with a broader trend in the Indian banking sector, where public sector banks (PSBs) are steadily regaining investor trust. Over the past two years, PSU banks have cleaned up their balance sheets, improved profitability, and adopted digital banking practices to compete with private lenders.
Indian Bank stands out for maintaining one of the lowest net NPA ratios among public sector banks. This gives the lender a strategic edge in attracting both retail and institutional investors who seek consistent returns with lower credit risk.
Key Metrics at a Glance
| Metric | Q4 FY24 | Q3 FY24 | QoQ Change | YoY Change |
|---|---|---|---|---|
| Total Business | ₹13.25 lakh cr | ₹12.61 lakh cr | +5.1% | Significant Growth |
| Total Deposits | ₹7.37 lakh cr | ₹7.02 lakh cr | +5% | – |
| Gross Advances | ₹5.88 lakh cr | ₹5.59 lakh cr | +5.2% | – |
| Net Profit | ₹2,852 crore | ₹2,119 crore* | – | +35% |
| Net Interest Income (NII) | ₹6,415 crore | ₹5,814 crore | +10.3% | – |
| Gross NPA | 3.26% | 3.48% | Improved | Improved |
| Net NPA | 0.21% | 0.27% | Improved | Improved |
| Operating Margin | 26.52% | 25.45% (YoY) | Improved | Improved |
| Net Profit Margin | 15.92% | 13.16% (YoY) | Improved | Improved |
| Share Price (April 4, BSE) | ₹545.95 | ₹549.25 | -0.60% | – |
*Note: Q3 net profit from YoY comparison (not exact sequential figure).
Looking Ahead
Indian Bank’s Q4 numbers signal strong financial discipline, efficient lending practices, and resilient growth strategies. The lender continues to strengthen its position among India’s top PSU banks. With improving profitability, falling bad loans, and expanding business volumes, Indian Bank can play a significant role in India’s economic recovery and credit expansion.
Investors and analysts will now watch the bank’s full annual results and management commentary in the upcoming earnings call. Key focus areas include credit growth guidance, provisioning trends, digital transformation progress, and capital adequacy outlook.
Indian Bank has laid the foundation for a promising FY25. If it maintains the current growth trajectory and controls asset stress, the bank could outperform peers and deliver sustained shareholder value in the months ahead.
