Indian Bank on Monday reported a net profit growth of 5 per cent y-o-y for the quarter ended March 2026 (Q4FY26) at ₹3,103 crore. Profit for the full year FY26 was up 11 per cent y-o-y at ₹12,156 crore from ₹10,918 crore in FY25. Profitability was aided by growth in core business as advances and deposits increased by 13 per cent and 12 per cent, respectively.
Net Interest Income increased 11.3 per cent y-o-y to ₹7,109 crore in Q4FY26 from ₹6,389 crore in Q4FY25. For the full fiscal, NII grew 6.9 per cent y-o-y to ₹26,915 crore.
Exceeds guidance
Binod Kumar, MD and CEO, Indian Bank, told mediapersons in an interaction that the public sector lender has exceeded guidance for FY26 on all operational parameters. For FY27, the banks is guiding for a 9-11 per cent growth in deposits and 11-13 per cent growth advances as macroeconomic variables still remain, he said.
Kumar highlighted the progress made in CASA (Current Account Savings Account) as a key highlight of the bank’s performance this year. Domestic CASA ratio stood at 39.7 per cent as of March 31, 2026, a growth of 10.8 per cent y-o-y.
“We have paid attention on CASA and the results are here to see. Within CASA, we have paid special attention to improving the salary accounts and float,” he said. Indian Bank opened 3 lakh new salary accounts in the last one year, and also re-activated 34 lakh inactive accounts through a focused drive.
On the advances front, the growth of 13 per cent in gross advances was led by retail advance growth of 18 per cent and MSME advances growth of 16 per cent. RAM (Retail, Agriculture & MSME) advances overall grew 15 per cent y-o-y to ₹4,04,126 crore as of March 2026. “We have not seen much stress in the segments of MSMEs we serve,” said the MD and CEO.
Asset quality showed overall improvement. GNPA percentage decreased by 111 bps y-o-y to 1.98 per cent in March 2026. NNPA percentage reduced by 4 bps y-o-y to 0.15 per cent.
Answering a query on the recent discussions around banks preparedness for AI-led cyber security threats around Mythos, Kumar said that the government has asked banks to become more aware and agile around any threats due to advancements in AI, and also develop systems and processes to counter them effectively. “We are strengthening our cybersecurity team, hiring AI experts and also engaging closely with third party IT service providers to coordinate with them,” he said.
The bank generated a business of ₹2,72,302 crore through digital channels in FY26. The bank has 6,001 domestic branches and 3 overseas branches & 1 IBU (Gift City Branch).
Published on April 29, 2026