Indian Bank Sees Strong Growth in Digital Banking for Q1 FY25
Indian Bank reports a 33% increase in mobile banking users to 1.75 crore and 66% growth in PoS terminals to 21,656, with ₹36,678 crore generated through digital channels in Q1 FY25.
by Damodharan N
Updated Jul 31, 2024
Table of Content
Indian Bank has reported robust growth in its digital banking sector for the first quarter of FY25. The bank generated a significant ₹36,678 crore in business through digital channels during this period.
The number of mobile banking users surged by 33% year-over-year, reaching 1.75 crore. Additionally, UPI users and net banking users grew by 30% and 26% respectively, with the user bases expanding to 1.85 crore and 1.09 crore.
Credit card users saw a substantial 40% increase, totaling 2.38 lakh. Furthermore, the number of Point of Sale (PoS) terminals grew by 66% year-over-year, reaching a total of 21,656.
Indian Bank’s commitment to enhancing digital experiences is reflected in the launch of 84 new digital journeys, utilities, and processes, showcasing its focus on modernizing banking operations and customer interactions.
Source: Here
Indian Bank Q1 FY25 Results
Indian Bank has announced its financial results for the quarter ending June 30, 2024, showcasing strong performance across several key metrics.
The bank's global business reached ₹12.20 lakh crore, an 11% increase year-over-year (YoY). Net profit surged by 41% YoY to ₹2,403 crore, up from ₹1,709 crore in the same quarter last year. Operating profit also saw a notable improvement, rising by 9% YoY to ₹4,502 crore compared to ₹4,135 crore in June 2023.
Net Interest Income (NII) grew by 8% YoY to ₹6,178 crore, up from ₹5,703 crore. Fee-based income increased by 17% YoY to ₹788 crore, compared to ₹671 crore in June 2023. Return on Assets (RoA) improved by 25 basis points (bps) to 1.20%, while Return on Equity (RoE) rose by 188 bps to 19.76%.
The bank's yield on advances and yield on investments also saw improvements, rising by 16 bps and 43 bps, respectively. Gross advances grew by 12% YoY to ₹5,39,123 crore, with Retail, Agriculture, and MSME (RAM) advances increasing by 13% YoY to ₹3,13,301 crore.
Total deposits increased by 10% YoY, reaching ₹6,81,183 crore. The bank's Capital Adequacy Ratio improved to 16.47%, with Common Equity Tier I (CET-I) capital rising to 13.42%.
Key Highlights:
- Net Profit: Up by 7% QoQ to ₹2,403 crore in June 2024 from ₹2,247 crore in March 2024.
- Operating Profit: Improved by 5% QoQ to ₹4,502 crore in June 2024 from ₹4,305 crore in March 2024.
- Net Interest Income (NII): Increased by 3% QoQ to ₹6,178 crore in June 2024 from ₹6,015 crore in March 2024.
- Return on Assets (RoA): Improved to 1.20% in June 2024 from 1.15% in March 2024.
- Yield on Investments (YoI): Improved to 7.15% in June 2024 from 6.88% in March 2024.
- Domestic Net Interest Margin (NIM): Increased to 3.53% in June 2024 from 3.52% in March 2024.
- Cost to Income Ratio: Improved by 368 basis points (bps) to 44.31% in June 2024 from 47.99% in March 2024.
- Gross Non-Performing Assets (GNPA): Decreased by 18 bps QoQ to 3.77% in June 2024 from 3.95% in March 2024.
- Net Non-Performing Assets (NNPA): Reduced by 4 bps to 0.39% in June 2024 from 0.43% in March 2024.
Indian Bank
Indian Bank, established on March 5, 1907, with an initial capital of ₹20 lakhs, began operations on August 15, 1907. Over the years, the bank expanded its operations and capital significantly, reaching ₹60 lakhs by 1921.
It marked several milestones, including its Silver Jubilee in 1932, Golden Jubilee in 1957, and Diamond Jubilee in 1967. The bank’s logo evolved in 1978, and it celebrated its Platinum Jubilee in 1982.
Major developments include the amalgamation with Bank of Thanjavur in 1990, achieving 100% Core Banking Solutions compliance in 2008, and the integration of Allahabad Bank in 2020. By 2024, Indian Bank's global business exceeded ₹12 lakh crores, with a vast network of 5,847 domestic branches and 4 international touchpoints.
Indian Bank Sees Strong Growth in Digital Banking for Q1 FY25 - FAQs
1. What was Indian Bank's net profit for Q1 FY25?
Indian Bank's net profit for the first quarter of FY25 was ₹2,403 crore.
2. How much did Indian Bank's net profit increase YoY in Q1 FY25?
The net profit increased by 41% year-over-year in Q1 FY25, up from ₹1,709 crore in the same quarter last year.
3. What was Indian Bank's operating profit for Q1 FY25?
The operating profit for Indian Bank in Q1 FY25 was ₹4,502 crore.
4. How much did Indian Bank's operating profit improve YoY in Q1 FY25?
Operating profit improved by 9% year-over-year, rising from ₹4,135 crore in June 2023.
5. How much did NNPA decrease QoQ in Q1 FY25?
NNPA decreased by 4 basis points quarter-over-quarter.
6. How much business did Indian Bank generate through digital channels in Q1 FY25?
Indian Bank generated ₹36,678 crore in business through digital channels in Q1 FY25.
7. what percentage did the number of mobile banking users grow YoY in Q1 FY25?
The number of mobile banking users grew by 33% year-over-year, reaching 1.75 crore.
8. What was Indian Bank's Net Interest Income (NII) for Q1 FY25?
The Net Interest Income (NII) for Q1 FY25 was ₹6,178 crore.
9. How much did Net Interest Income increase YoY in Q1 FY25?
Net Interest Income increased by 8% year-over-year, up from ₹5,703 crore in the previous year.
10. How much did Indian Bank's fee-based income grow YoY in Q1 FY25?
Fee-based income grew by 17% year-over-year, reaching ₹788 crore compared to ₹671 crore in June 2023.
11. What was the Return on Assets (RoA) for Indian Bank in Q1 FY25?
The Return on Assets (RoA) for Q1 FY25 was 1.20%.
12. How many basis points did RoA improve YoY in Q1 FY25?
RoA improved by 25 basis points year-over-year, up from 0.95% in June 2023.
13. What was the Return on Equity (RoE) for Indian Bank in Q1 FY25?
The Return on Equity (RoE) for Q1 FY25 was 19.76%.
14. How many basis points did RoE increase YoY in Q1 FY25?
RoE increased by 188 basis points year-over-year, up from 17.88% in June 2023.
15. What was the yield on advances for Indian Bank in Q1 FY25?
The yield on advances for Q1 FY25 was 8.69%.
16. What was the yield on investments for Indian Bank in Q1 FY25?
The yield on investments for Q1 FY25 was 7.15%.
17. How much did gross advances grow YoY in Q1 FY25?
Gross advances grew by 12% year-over-year, reaching ₹5,39,123 crore compared to ₹4,79,404 crore in June 2023.
18. What was the growth rate for RAM (Retail, Agriculture, and MSME) advances YoY in Q1 FY25?
RAM advances increased by 13% year-over-year, totaling ₹3,13,301 crore.
19. How much did total deposits increase YoY in Q1 FY25?
Total deposits increased by 10% year-over-year, reaching ₹6,81,183 crore.
20. What was Indian Bank's Capital Adequacy Ratio in Q1 FY25?
The Capital Adequacy Ratio in Q1 FY25 was 16.47%.
21. What was the Common Equity Tier I (CET-I) capital for Indian Bank in Q1 FY25?
The Common Equity Tier I (CET-I) capital was 13.42% in Q1 FY25.
22. How much did Indian Bank's net profit increase QoQ in Q1 FY25?
Net profit increased by 7% quarter-over-quarter, rising from ₹2,247 crore in Q4 FY24.
23. What was the operating profit for Indian Bank in Q1 FY25 compared to Q4 FY24?
The operating profit improved by 5% quarter-over-quarter, up from ₹4,305 crore in March 2024.
24. How much did Net Interest Income increase QoQ in Q1 FY25?
Net Interest Income increased by 3% quarter-over-quarter, up from ₹6,015 crore in Q4 FY24.
25. What was the Return on Assets (RoA) for Indian Bank in Q1 FY25 compared to Q4 FY24?
RoA improved to 1.20% from 1.15% in the previous quarter.
26. What was the yield on investments in Q1 FY25 compared to Q4 FY24?
The yield on investments improved to 7.15% from 6.88%.
27. How much did the Domestic Net Interest Margin (NIM) improve QoQ in Q1 FY25?
The Domestic Net Interest Margin (NIM) increased to 3.53% from 3.52% in Q4 FY24.
28. What was the Cost to Income Ratio for Indian Bank in Q1 FY25 compared to Q4 FY24?
The Cost to Income Ratio improved by 368 basis points to 44.31% from 47.99%.
29. How much did Gross Non-Performing Assets (GNPA) decrease QoQ in Q1 FY25?
Gross Non-Performing Assets (GNPA) decreased by 18 basis points to 3.77% from 3.95%.
30. What was the Net Non-Performing Assets (NNPA) for Indian Bank in Q1 FY25?
The Net Non-Performing Assets (NNPA) for Q1 FY25 was 0.39%.