Indian Bank on Friday reported a standalone net profit of Rs 3,273 crore for the April-June quarter of FY27, marking a more than 10% year-on-year (YoY) rise from Rs 2,973 crore reported in the corresponding quarter of the previous financial year.The PSU lender’s net interest income (NII), meanwhile, rose nearly 17% to around Rs 7,435 crore in Q1 FY27 from Rs 6,359 crore in Q1 FY26. The company’s shares surged around 10% following the release of the results.Indian Bank’s rise in net profit and NII was accompanied by a sharp improvement in asset quality. Gross non-performing assets (GNPA) fell nearly 30% YoY to Rs 12,710 crore, while the gross NPA ratio declined to 1.86% from 3.01% in Q1 FY26. Net NPA, meanwhile, fell over 4% YoY to Rs 990 crore, with the net NPA ratio improving to 0.15% from 0.23% a year earlier.The PSU bank’s net worth rose nearly 14% YoY to Rs 68,793 crore in the first quarter of FY27, from Rs 60,383 crore in the same period of FY26. Its operating profit margin rose to 26.82% from 25.48% a year earlier, while net profit margin edged down to 15.79% from 15.88% in Q1 FY26.Indian Bank’s return on assets rose to 1.34%, while earnings per share (EPS) increased to Rs 24.92. Its capital adequacy ratio stood at 17.80%, while total advances grew around 14% to Rs 6.84 lakh crore.The bank said its slippage ratio declined to 0.77% in June 2026 from 0.94% in June 2025. Yield on investments (YoI), meanwhile, stood at 6.96%, while domestic net interest margin (NIM) improved to 3.41% from 3.35% a year earlier.“We aim to become the preferred financial partner for customers by catering to their full spectrum of banking needs. Our strategy centers on operational efficiency, disciplined portfolio management, and delivering simpler, faster and more delightful banking experiences. At the core lies a customer-centric ethos that guides every interaction and innovation,” Indian Bank said in its press release.Indian Bank share priceFollowing the results, Indian Bank shares surged nearly 10% to trade at Rs 867.80 apiece on the NSE. The stock has gained more than 8% over the past week and 4% in the last month.The shares are up around 4% so far in 2026. Over the longer term, the stock has delivered returns of 37% over one year, 179% over three years, and 535% over five years.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)