Indian Bank Q1 Deposits Rise 9.3% YoY to ₹7.44 Lakh Crore

Public sector lender Indian Bank has reported a sudden increase in its deposit base for the April–June quarter (Q1 FY26), with total deposits reaching ₹7.44 lakh crore, a year-over-year (YoY) rise of 9.3% from ₹6.81 lakh crore as of June 30, 2024.

On a sequential (quarter-over-quarter) basis, deposits edged up by nearly 1%, rising from ₹7.37 lakh crore on March 31, 2025.

Total Business & Credit Growth

• Total business (loans + deposits) surged to ₹13.44 lakh crore, marking a 10.2% YoY increase and a 1.4% QoQ rise.
   
• Gross advances climbed to ₹6 lakh crore, growing 11.3% YoY and 2% QoQ.

The uptick in lending is supported by growth in key segments, including retail, agriculture, and MSME. According to HDFC Sky, the RAM segment surged by 16% YoY, reaching ₹3.63 lakh crore.

CASA & Deposit Composition

The rise in deposits was fueled by strong traction in current accounts (CA), with CA deposits growing 8.6% YoY. Meanwhile, savings bank (SB) deposits grew modestly (~3%), coming in at ₹2.38 lakh crore.

Financial Outlook & Context

This massive deposit performance comes amid a challenging environment for the banking sector, where many lenders faced muted Q1 earnings due to sluggish loan growth, compressed margins, and subdued fee income. 

Read More – How to Download & Understand Indian Bank Statement

However, Indian Bank appears to buck the trend with its strong business momentum and deposit mobilisation efforts.

Strategic Implications
 

• The massive 9.3% YoY deposit growth provides the bank with a stable and lower-cost funding base.
   
• With advances growing faster (11.3% YoY), Indian Bank is effectively deploying this capital into lending.
   
• Sustained focus on CA mobilisation enhances the bank’s CASA ratio, improving its net interest margins.

Q1 FY26 Performance of Indian Bank

Conclusion

Indian Bank’s Q1 FY26 results reflect a well-executed strategy emphasizing deposit growth, priority-sector lending, and business diversification across retail, agriculture, and MSME segments. 

Also Read - Indian Bank Zero Balance Account

The sequential improvements in both advances and deposits demonstrate balanced momentum, positioning the bank strongly amid a sector grappling with margin pressures and fee headwinds.

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