Nifty PSU Bank Index Up On Sharply Rising Indian Bank Share Price After Q1 Earnings

The Nifty PSU Bank index moved up about 4% on Friday, helped largely by a marked increase in Indian Bank share prices following its strong earnings report for the June quarter of FY27. The rally extended across public sector banking stocks, with all 12 constituents of the index trading in positive territory during the session.

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Indian Bank share price jumped as much as 10% to an intraday high of ₹872.45 on the NSE before trimming some gains. The stock later traded at ₹860.35, still higher by 8.47%, as investors responded to the bank’s quarterly earnings and operational performance.

Profit Growth Supports Indian Bank Share Price

According to the bank’s regulatory filing, standalone net profit increased to ₹3,273.09 crore in the April-June quarter from ₹2,972.82 crore reported in the corresponding period last year, reflecting growth of more than 10%.

Net interest income also improved, rising 17% year-on-year to ₹7,435 crore compared with ₹6,359 crore a year earlier. The stronger earnings helped lift Indian Bank share price as investors assessed the bank’s improving core business performance.

The lender also reported steady credit expansion. Gross advances rose 13.89% year-on-year to ₹6,84,623 crore in June 2026 from ₹6,01,147 crore in the same period last year. Total deposits increased 13.47% to ₹8,44,578 crore from ₹7,44,289 crore.

Asset Quality Continues To Improve

The quarterly update also showed further strengthening in asset quality. Gross non-performing assets declined to 1.86% from 3.01% a year ago, while net non-performing assets improved to 0.15% from 0.18%.

The domestic CASA ratio stood at 39.73%, up from 38.97% in the corresponding quarter last year. Domestic net interest margin improved to 3.41%, compared with 3.35% in the previous quarter, remaining above the bank’s guidance range of 3.10%-3.25% for the full financial year.

Provision coverage ratio edged higher to 98.22% from 98.20% a year ago. Meanwhile, provisions and contingencies rose 73% year-on-year to ₹1,196 crore, with provisions for non-performing assets amounting to ₹376 crore.

Broader PSU Banking Stocks Advance

The positive earnings momentum was reflected across the sector. Bank of Maharashtra gained around 5%, while Bank of India advanced approximately 4.5% during the session. Buying interest was visible across the public sector banking space as investors tracked quarterly financial performance.

The broader banking segment also remained firm. Bank Nifty extended gains for a second consecutive session, supported by advances in private lenders including AU Small Finance Bank, ICICI Bank and Axis Bank.

Friday’s session highlighted continued investor focus on quarterly earnings, with Indian Bank share price emerging as one of the strongest performers after reporting higher profit, stronger net interest income, improving asset quality and steady growth in both advances and deposits.