State-owned Indian Bank on Wednesday reported a 5 per cent increase in net profit to Rs 3,103 crore for the fourth quarter of 2025-26, aided by a decline in bad loans. The Chennai-based lender had earned a net profit of Rs 2,956 crore in the year-ago period.
Income and interest earnings show steady growth
During the quarter, the bank’s total income increased to Rs 19,980 crore from Rs 18,599 crore a year ago, Indian Bank said in a regulatory filing. Interest income grew to Rs 17,480 crore from Rs 15,856 crore in the fourth quarter of the previous financial year. At the same time, Net Interest Income (NII) in the quarter also improved to Rs 7,109 crore from Rs 6,389 crore in the same period a year ago, Indian Bank MD & CEO Binod Kumar said in a post announcement of quarterly numbers.
Capital raising plans and dividend announcement
With regard to the capital-raising plan for FY27, he said the bank has taken board approval for raising up to Rs 5,000 crore through various modes, including Qualified Institutional Placement (QIP) if needed. The bank was having similar approval for raising equity capital but the bank has not approached the market to raise capital during FY 2025-26, he said. He further said that the board has proposed a dividend of Rs 18.25 per share (182.50 per cent) of face value Rs 10 each for 2025-26. The bank would follow the trend as far as dividend distribution in the current fiscal as well, he added.
Asset quality improves significantly
On the asset quality front, the bank’s gross Non-Performing Assets (NPAs) moderated to 1.98 per cent of gross advances as compared to 3.09 per cent by the end of March 2025. Similarly, Net NPAs came down to 0.15 per cent of the net advances over 0.19 per cent at the end of 2025.
As a result, provision for bad loans declined to Rs 748 crore as against Rs 1,100 crore in the fourth quarter of previous financial year. Total recovery during the Q4 moderated to Rs 1,499 crore as against Rs 1,782 crore in the same period a year ago. During the entire fiscal, the bank made a total recovery of Rs 6,651 crore as compared to Rs 7,651 crore in the previous fiscal.
Strong capital position and full-year performance
Provision Coverage Ratio of the bank rose to 98.28 per cent as of March 31, 2026, from 98.10 per cent at the end of the previous year. The bank’s capital adequacy ratio remained static at 17.93 per cent in FY26.
For the entire financial year 2025-26, the bank reported an 11 per cent increase in profit at Rs 12,156 crore as against Rs 10,918 crore in the previous year. The bank’s total income during the financial year rose to Rs 77,441 crore as against Rs 71,226 crore a year ago. Net Interest Income (NII) rose to Rs 26,915 crore in FY26 from Rs 25,176 crore in the previous year. The net interest margin stood at 3.23 per cent for the year ended March 2026.
Published on April 29, 2026