The bank set aside Rs 1,226 crore as provisions and contingencies against Rs Rs 795 crore in the year-ago period. Provisions to cover bad loans stood at Rs 748 crore.
Gross non-performing assets fell to 1.98% at the end of March from 3.09% a year prior. Net NPA reduced to 0.15% from 0.19% over the same period. Provision coverage ratio stood at 98.28%.
“The banking sector this year may see challenges in terms of treasury operation if interest rate hardens as a fallout of the West Asia conflict,” Indian Bank managing director Binod Kumar told ET, while expressing optimism over steady growth in advances.
The bank has given guidance of 11-13% advance growth for this fiscal as compared with 10-12% growth projection given for FY26.
Its advances last year however grew 13.4% to Rs 6.67 lakh crore at the end of March. Deposits rose 12.3% to Rs 8.28 lakh crore with current and savings bank account share being at 39.7%.
The bank has created an additional Rs 310 crore provision buffer to cover any likely risk arising out of the West Asia crisis-led supply chain disruptions.