Indian Bank makes a corporate announcement

The latest quarterly results reporting NIM is Q1 FY27, quarter ended 30 June 2026. Domestic NIM was 3.41%, up 6 bps sequentially from 3.35% in Q4 FY26; the bank’s global NIM was reported at 3.29%. ^{[1] [2]}

The sequential improvement was driven by both sides of the spread:

• Cost of funds: declined 5 bps QoQ, from 4.88% to 4.83%.
• Yield on advances: increased 2 bps QoQ, from 8.07% to 8.09%.
• Cost of deposits: declined 3 bps, from 4.83% to 4.80%. ^[1]

Management attributed approximately 1–1.5 bps of benefit to deposit repricing, supported by selective bulk-deposit mobilisation and borrowings available at around 5.00–5.25%, which were cheaper than short-duration bulk deposits. ^[3]

Read-through: the 6-bps NIM expansion was primarily funding-cost led, with a smaller contribution from the 2-bps improvement in advance yields. The reported 2.8% consolidated NIM in the structured financial series is a different basis/definition from the bank’s disclosed domestic NIM and should not be directly substituted for the 3.41% filing ratio. ^[4]

Indian Bank’s latest financial results are Q1 FY27, for the quarter ended 30 June 2026.

• Gross NPA: The bank reported a GNPA ratio of 1.86%. Applying this to reported gross advances of Rs 684,623 Crores gives an implied gross NPA balance of approximately Rs 12,734 Crores — derived, not directly stated in the cited extract. ^[5]
• Net NPA: The bank reported an NNPA ratio of 0.15%. The exact absolute NNPA balance cannot be calculated reliably from the cited disclosures because net advances are not provided; using gross advances as the denominator would only produce an approximation.
• Provision Coverage Ratio: 98.22%, including technically written-off accounts, as of 30 June 2026. ^[6]

The reported GNPA ratio declined by 115 bps year-on-year, while NNPA remained at 0.15%; PCR was slightly below the 98.28% reported at 31 March 2026. ^[7]

Indian Bank’s latest reported CRAR was 17.58% as of 30 June 2026. It sits in the middle of the supplied comparison set: above Canara Bank and Bank of Baroda, but below PNB, Union Bank and Bank of Maharashtra. The supplied peers are public-sector banks, not mid-sized private-sector banks; therefore, the ranking below is a PSU comparison rather than a private-bank comparison.

Tier-1 buffer: Indian Bank reported Tier-1 capital of 16.51% as of June 2026 ^[1]. Against the 9.50% Tier-1 regulatory requirement cited in the Q1 capital disclosures ^[13], the indicative buffer is:

16.51% − 9.50% = 7.01 percentage points

This is a sizeable ratio cushion, but it should not be read as 7.01% of new loans that can automatically be added. Actual credit capacity depends on the risk weights of incremental loans, the bank’s internal capital target, earnings accretion, liquidity and provisioning requirements. Moreover, management said that the transfer of Rs 2,000 Crores of investment fluctuation reserves from Tier 2 to Tier 1 contributed approximately 44 basis points to the capital ratio ^[7]; part of the current Tier-1 strength therefore reflects a capital reclassification rather than fresh external equity.

A private-sector-bank comparison would require a different peer roster and comparable June 2026 CRAR disclosures.