Competition desk · Government banks · Apr–Jun 2026
Indian Bank's June-quarter profit rose 10.1% year on year while its provisions rose 73.0%
Indian Bank's June-quarter profit grew more slowly than most government banks' while it set aside far more money against possible losses; the bank says that included a Rs 1,000 crore floating provision, so this reaches its shareholders directly and its savers and borrowers only through how the bank prices deposits and loans.
From the bank's own quarterly results; profit covers the bank alone. The bank's filing.
Indian Bank's profit for the June quarter rose 10.1% from a year earlier to Rs 3,273.09 crore, while the money it set aside against possible losses rose 73.0%, even as the middle move on that line among government banks was a fall of 11.5%. The bank says it made a floating provision of Rs 1,000 crore during the quarter, a cushion held against loans that are still being repaid, but its MD & CEO also told its June 2026 quarter earnings call that "SMA-2 increased because of one account" (loans falling behind on payment), so the set-aside cannot be read as a cushion alone. What we don't know is how much of the gap between its profit growth and the 20.0% middle rise among government banks that cushion explains, against its operating expenses, which rose 12.0%.
Why we think so3 reasons
On what grounds?
- The first reason is the set-aside. Indian Bank's provisions rose Rs 504.72 crore on the year, more than the Rs 300.27 crore its profit gained, while the middle move on the same line among government banks was a fall of 11.5%. The bank says it made a floating provision of Rs 1,000 crore in the quarter, and that one large account brought back a recovery of around Rs 400 crore. The bank's MD & CEO also said on the June 2026 quarter earnings call that "SMA-2 increased because of one account" (loans falling behind on payment), the bank's own signal against reading the set-aside as a cushion only.
- The set-aside was not the only cost that grew faster than at other government banks. Operating expenses rose 12.0% while the middle move among them was a fall of 0.4%, and that weighed on profit even though total income rose 10.7% against a 5.3% middle rise and the bank's cost of deposits fell from 5.14 to 4.8 percent.
- Both of those are costs the bank carried; the third reason is slower lending. Advances rose 15.2% against a 19.3% middle rise at Bank of Baroda, Bank of India, Bank of Maharashtra and State Bank of India. The bank gave a reason only for its farm-loan book, which grew 9.96%: "partly because the transition in jewel loans during the first two months involved IT issues", its MD & CEO said on the June 2026 quarter call. That speaks to the farm book, not to the whole 15.2%.
What drove it
The bank's MD & CEO, Shri Binod Kumar, gave three reasons on its June-quarter earnings call on 17 July 2026, each with its own figure. First, the 73.0% rise in money set aside: "We made a floating provision of Rs.1,000 crore during the quarter", a cushion set aside ahead of any named loss, while on the other side "One large account contributed a recovery of around Rs.400 crore during the quarter". Second, loans falling behind: "SMA-2 increased because of one account", he said, SMA-2 being loans 61-90 days overdue, the bank's stressed watch-list; among its larger accounts, SMA-2 loans rose by about Rs 190 crore in the quarter. Third, slower growth in the farm book, which he put down "partly" to "the transition in jewel loans during the first two months", which "involved IT issues and the framing of various policies"; the bank's jewel-loan book, loans made against gold, stood at Rs 132,000 crore at 30 June 2026 across all its lending segments, and with no figure for a year earlier no comparison over the year is possible.
What would prove us wrong3 trip-wires
What would we have to see to drop that read?
- A lower tax charge rather than the business: profit before tax rose only 6.9% while profit after tax rose 10.1%, so the quarter's tax line, a tax write-back included, would show how much of the rise came from paying less tax.
- Treasury gains or a gain from selling a stake, booked in other income: the bank says falling yields in the quarter's last week improved its profit, so the split of its other income would show whether bond gains rather than lending carried the quarter.
- Lower provisions or an exceptional item: provisions rose 73.0%, so lower provisions did not lift profit this year unless the recovery of around Rs 400 crore the bank cites was netted inside them; exceptional items printed Rs 0.00 crore on the group statement, and the bank's own statement would confirm it.
How the other government banks did
Did the other government banks move the same way, or is this Indian Bank alone?
At Indian Bank, profit rose 10.1%; at the typical firm it rose 20.0%
What our read rests on
Why it moved, in their words
“Yes. We made a floating provision of Rs.1,000 crore during the quarter.”
On provisions: call transcript page 6 of 12, Shri Binod Kumar (MD & CEO) (source)
“Yields declined during the final week, which improved the actual profit.”
On profit after tax: call transcript page 4 of 12, Shri Binod Kumar (MD & CEO) (source)
“One large account contributed a recovery of around Rs.400 crore during the quarter.”
On provisions: call transcript page 2 of 12, Shri Binod Kumar (MD & CEO) (source)
The rest of the quarter
The same figures, with where each was printed
| Figure | Apr–Jun 2025 | Apr–Jun 2026 | Change |
|---|---|---|---|
| CASA share of deposits | 38.97% | 39.73% | +0.76 percentage points |
| Cost of deposits | 5.14% | 4.80% | -0.34 percentage points |
| Fresh slippages (new bad loans in the quarter) | Rs 1,334 crore | Rs 1,250 crore | −6.3% |
| Gross advances | Rs 601,147 crore | Rs 684,623 crore | +13.9% |
| Interest earned | Rs 16,283 crore | Rs 18,090 crore | +11.1% |
| Net interest margin | 3.23% | 3.29% | +0.06 percentage points |
| Profit before tax | Rs 4,079 crore | Rs 4,362 crore | +6.9% |
What to watch3 things to watch
What happens next, and when would we know?
- Next quarter's provisions, and whether the bank adds to its floating cushion again or says the Rs 1,000 crore was enough; that answers the open question above.
- Operating expenses, which rose 12.0% while the middle move among government banks was a fall of 0.4%; the bank's next call is where a reason would appear.
- Loan growth against Bank of Baroda, Bank of India, Bank of Maharashtra and State Bank of India, whose middle rise in advances was 19.3% against Indian Bank's 15.2%, after the bank says it shed around Rs 6,000 crore of thinly priced loans.
Who this touches
Who could benefit and who is at risk, and on what condition?
Opinion · adds no figures the Facts do not hold · every effect is potential and states its condition
| Who | Potential effect | How it reaches them | How sure |
|---|---|---|---|
| Shareholders | ▲ potential benefitif new bad loans keep falling so the cushion is never needed | money set aside now is a cost taken early; if losses do not arrive, later quarters carry less and profit can catch up with other government banks | Inferred · the bank has not said whether it will add more |
| Savers & depositors | ◆ unclearpulls both ways: the cushion makes the bank sturdier, but its cost of deposits fell from 5.14 to 4.8 percent, which is what savers are paid; next quarter's cost of deposits would settle it | the rate the bank pays on deposits is the saver's income, and a bank growing deposits by 13.5% has less need to pay up for them | Inferred · no figure for rates paid to savers |
| Borrowers | ▼ potential riskif the bank keeps shedding loans where pricing is highly competitive | the bank says it shed around Rs 6,000 crore of such loans on a sequential basis, so borrowers shopping for the lowest rate may find less on offer from it | Inferred · a quarter-on-quarter figure only |
| Banks | ▼ potential riskif Indian Bank keeps growing deposits faster than other government banks | its deposits rose 13.5% against a 9.8% middle rise among Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Punjab National Bank, State Bank of India and Union Bank of India, and deposits one bank wins are deposits a rival does not | Inferred · no figure shows where the money came from |
Learn: reading Indian Bank's quarter
What this card is about. Indian Bank is a government-owned bank that takes deposits from savers and lends them out to people and firms. Its shareholders, its savers and its borrowers all read its quarterly results to see how the bank is doing. This card compares the quarter to 30 June 2026 with the same quarter a year earlier, and every figure is from the bank's own quarterly filing.
The other words behind these figures
Profit for the period. This is what the bank kept after every cost, set-aside and tax for the quarter. For the June quarter it was Rs 3,273.09 crore, against Rs 2,972.82 crore a year earlier: up 10.1%, or Rs 300.27 crore.
Year on year. Each figure is set against the same quarter a year before, so a season that repeats every year does not look like news.
Standalone and consolidated. A standalone figure covers the bank on its own books; a consolidated one covers the whole group, including companies it owns that take no deposits. The two are never compared with each other, so every comparison with other banks here uses standalone figures.
Government banks. The comparison group is the listed government-owned banks: Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Overseas Bank, Punjab National Bank, State Bank of India, UCO Bank and Union Bank of India. Where a bank did not report both quarters it drops out of that line's comparison. The middle rise in profit among them was 20.0%.
How the other banks moved. Among listed banks with both June quarters on their own books, every one's profit rose except Bank of Baroda's, which fell 71.9%. The middle move was a rise of 28.2%. Only HDFC Bank and Canara Bank moved by 5% or less. A few rose sharply: Punjab National Bank, Ujjivan Small Finance Bank and IDFC First Bank more than doubled.
A bigger move in the same quarter. Punjab National Bank's June-quarter profit rose 213.6%, from Rs 1,675 crore to Rs 5,253.29 crore, the largest rise in both rupees and percent. Indian Bank's quarter stands apart on a different line: its provisions rose 73.0% while the middle move on that line among government banks was a fall of 11.5%.
Total income. Everything the bank earned in the quarter: interest on loans and investments plus fees and other income. It rose 10.7% to Rs 20,723.62 crore.
Interest expended. What the bank paid out as interest, mostly to depositors, though it is a total and not only deposit interest. It rose 7.4% to Rs 10,655.40 crore.
Operating expenses. The cost of running the bank, such as staff and branches. It leaves out interest paid and set-asides. It rose 12.0% to Rs 4,510.93 crore.
Provisions and contingencies. Money set aside in the quarter against loans that may not be repaid, falls in the value of investments, and other possible losses. It is a net figure: some set-asides are released while others are added. It rose 73.0% to Rs 1,195.72 crore.
Exceptional items. A line in the results for items the bank chooses to show apart from ordinary business. On the group statement it printed Rs 0.00 crore this quarter.
Deposits held. The money savers and firms had placed with the bank on 30 June, a balance on a date rather than a flow over the quarter. It rose 13.5% to Rs 844,578 crore.
Advances outstanding. The loans on the bank's books on 30 June, after taking off money already set aside against them. It rose 15.2% to Rs 672,903 crore.
Loans as a share of deposits. Advances divided by deposits: how much of each rupee deposited is lent out. It moved from 78.5% to 79.7%.
Go deeper
The figures and where they came from
| Figure | Apr–Jun 2026 | Against a year earlier · peers | Where from |
|---|---|---|---|
| Income | Rs 20,724 crore | +10.7% · peer median +5.3% (10 of 10) | Bank's quarterly results, the bank alone · filing · unusual against peers |
| Interest paid | Rs 10,655 crore | +7.4% · peer median +4.5% (8 of 10) | Bank's quarterly results, the bank alone · filing |
| Running costs | Rs 4,511 crore | +12.0% · peer median −0.4% (8 of 10) | Bank's quarterly results, the bank alone · filing · unusual against peers |
| Provisions | Rs 1,196 crore | +73.0% · peer median −11.5% (9 of 10) | Bank's quarterly results, the bank alone · filing · unusual against peers |
| Profit | Rs 3,273 crore | +10.1% · peer median +20.0% (10 of 10) | Bank's quarterly results, the bank alone · filing |
| Charge labelled exceptional | Rs 0 crore | −100.0% | Bank's quarterly results, the whole group · filing |
| Deposits | Rs 844,578 crore | +13.5% · peer median +9.8% (7 of 10) | Bank's quarterly results, the bank alone · filing |
| Loans | Rs 672,903 crore | +15.2% · peer median +19.3% (4 of 10) | Bank's quarterly results, the bank alone · filing |
| Loans as a share of deposits at 30 Jun 2026 | 79.7% | Our calculation, not printed by any publisher | |
| Loans as a share of deposits at 30 Jun 2025 | 78.5% | Our calculation, not printed by any publisher |
How unusual, and said before
Profit for the period, from its own quarterly filing changed up 10.1% year on year; median of all the 10 other government banks with both quarters, Indian Bank excluded: up 20.0%; the 8th-largest of the 10 rises, among 11 government banks holding both quarters.
Of 24 other year-on-year comparisons of Profit for the period, from its own quarterly filing for tracked banks with a quarter in 2026, 10 moved the same way by at least Rs 300.27 crore, and 19 by at least 10.1% of the prior-year figure.
Audit trail: how this card was checked, and the store's own notes
Status: Clear. the quarter is filed and every figure is addressed
Computed by us, from the published figures:
- Loans as a share of deposits at 2026-06-30: 79.7%, from Advances outstanding, from its own balance sheet divided by Deposits held, from its own balance sheet, both standalone, at 2026-06-30
- Loans as a share of deposits at 2025-06-30: 78.5%, from Advances outstanding, from its own balance sheet divided by Deposits held, from its own balance sheet, both standalone, at 2025-06-30
- Change in Provisions (other than tax) and contingencies, from its own quarterly filing: Rs 504.72 crore, from Provisions (other than tax) and contingencies, from its own quarterly filing at 30 Jun 2026, less the same figure at 30 Jun 2025
- Change in Profit for the period, from its own quarterly filing: Rs 300.27 crore, from Profit for the period, from its own quarterly filing at 30 Jun 2026, less the same figure at 30 Jun 2025
Exact figures: Total income, from its own quarterly filing Rs 20,723.62 crore (standalone), Rs 2,002.31 crore (+10.7%) against 30 Jun 2025; Interest expended, from its own quarterly filing Rs 10,655.40 crore (standalone), Rs 731.56 crore (+7.4%) against 30 Jun 2025; Operating expenses, from its own quarterly filing Rs 4,510.93 crore (standalone), Rs 483.74 crore (+12.0%) against 30 Jun 2025; Provisions (other than tax) and contingencies, from its own quarterly filing Rs 1,195.72 crore (standalone), Rs 504.72 crore (+73.0%) against 30 Jun 2025; Profit for the period, from its own quarterly filing Rs 3,273.09 crore (standalone), Rs 300.27 crore (+10.1%) against 30 Jun 2025; Exceptional items, one quarter (row 9 of the RBI format) Rs 0.00 crore (consolidated), Rs −0.01 crore (−100.0%) against 30 Jun 2025; Deposits held, from its own balance sheet Rs 844,578.00 crore (standalone), Rs 100,289.00 crore (+13.5%) against 30 Jun 2025; Advances outstanding, from its own balance sheet Rs 672,903.00 crore (standalone), Rs 88,787.00 crore (+15.2%) against 30 Jun 2025.
What the source itself warns about
- Income. Consolidated or standalone exactly as the filer's own heading states it, recorded on every reading — the two are NOT interchangeable and must never be compared across firms without checking the basis. Never sum these into a banking-sector total: the 37 are the listed banks this desk tracks, not the scheduled commercial banking system.
- Interest paid. RBI'S PRESCRIBED ROW, AND IT IS NOT AN Ind AS FINANCE COST. A bank's interest expended is dominated by deposits taken from the public under a banking licence; an Ind AS "Finance costs" is wholesale borrowing. The two are different definitions of the cost of money and MUST NEVER BE ADDED, averaged, or read into one series — that is why this metric exists separately from a bank's wholesale finance cost rather than filling it. It is a PART of the bank's own "Total Expenditure" line, which this reader deliberately does not store, so it must never be added to any cost total held here. Never the label inside "Total Expenditure (4+5) (Interest Expended + Operating Expenses)", and never RBI's schedule note about "total expenditure excluding interest expenditure" — both appear in this archive and both are refused by name. Stored only where it sits between zero and the filing's own total income. Consolidated or standalone as the filer's own heading states it, recorded on every reading; the two are NOT interchangeable. Never summed into a sector total.
- Running costs. A BANK'S "Operating Expenses" ROW, which EXCLUDES interest expended and EXCLUDES provisions. It is neither the bank's total expenditure nor an Ind AS filer's "Total expenses", and comparing it with either is comparing two different definitions of cost: see a finance company's total expenses. Basis recorded per reading. Never summed into a sector total. MAY BE EMPTY FOR THIS POPULATION and that is honest rather than a gap — only RBI's prescribed format prints this row, so a population whose filers use Ind AS will hold nothing here.
- Provisions. RBI's "Provisions (other than tax) and Contingencies" row, and only that row. It is NOT an Ind AS filer's "Impairment on financial instruments": a bank's row carries investment depreciation and standard-asset provisioning beside credit cost, so it must never be compared with or added to a finance company's impairment line, and a bank's impairment line stays empty by design. IT IS NOT THE WHOLE GAP EITHER — tax is the other half of what separates operating surplus from profit, and this store holds no tax figure for this bank for 2026-06-30. The figure is a quarter's charge, not a stock of provisions, and it is NEGATIVE where write-backs exceeded fresh provisioning: a write-back is a real reading and must not be read as zero. MAY BE EMPTY FOR A BANK THAT WORDS THE ROW DIFFERENTLY — five banks print a bare "Provisions & Contingencies" with no "(other than tax)", which also appears in the analytical-ratios block, and they hold nothing here rather than something adjacent. Basis recorded per reading. Never summed into a sector total. UNDIVIDED: this is the one total the format prints; the split into NPA provisions, standard-asset provisions and investment depreciation is held only where the filing prints it ("of which provisions for Non-Performing Assets"), and is otherwise an honest blank -- never estimated from the total.
- Profit. Most statements print this label twice — once as the row and once as the heading over the split between owners and minorities — and a filing with two claimants is refused rather than resolved by position. Basis recorded per reading. Never summed into a sector total.
- Charge labelled exceptional. Stored where a filing PRINTS a figure in the quarter's column, INCLUDING a printed 0.00, stored as 0; a dash or an absent row is not stored, so an absent reading means "none printed", never zero. A charge is positive; a gain would be negative as printed. Read on the statement the reader uses for the firm (declared basis, else standalone first); the basis is recorded on every reading.
- Deposits. A STOCK ON A DATE, NOT A FLOW OVER A QUARTER, and it must never be added to or averaged with any bank_firm_ figure that is a flow. It is the bank's total deposits and is NOT split into current, savings and time money — that split exists only for the system as a whole (the system-wide demand-deposit series, the system-wide time-deposit series), so no per-bank statement about the CHEAPNESS of a deposit base can rest on this. The balance sheet is a half-yearly obligation, so a bank filing quarterly results may print no balance sheet at all; the absence is the filer's, not a reading failure. Where a filing prints only the consolidated statement the figure covers the whole group including subsidiaries that take no deposits, and it carries its basis for exactly that reason — a group figure must never be compared against another bank's standalone one.
- Loans. NET OF PROVISIONS, WHICH IS WHAT SCHEDULE 9 PRINTS, and it is NOT the "Gross Advances" figure that appears in the asset-quality note of the same filing — 45 held filings print both, and reading the wrong table gives a larger number that is a different definition. A stock on a date, never a flow. Carries its basis; a group figure and a standalone one are not comparable.