State-owned Indian Bank reported a 5% rise in net profit to ₹3,103 crore for the fourth quarter, compared with ₹2,956 crore in the year-ago period, as reported by Outlook Business. The bank's total income increased to ₹19,980 crore from ₹18,599 crore a year ago, with interest income growing to ₹17,480 crore from ₹15,856 crore in the fourth quarter of the previous financial year. The bank's Net Interest Income (NII) improved to ₹7,109 crore from ₹6,389 crore in the same period a year ago, with net interest margin standing at 3.23% for the year ended March 2026. The bank set aside ₹748 crore as provisions and contingencies against ₹1,100 crore in the year-ago period, with provisions to cover bad loans.
According to Outlook Business, gross non-performing assets fell to 1.98% at the end of March from 3.09% a year prior, while net NPA reduced to 0.15% from 0.19% over the same period. The provision coverage ratio rose to 98.28% as of March 31, 2026, from 98.10% at the end of the previous year, indicating strong asset quality management. Total recovery during Q4 moderated to ₹1,499 crore as against ₹1,782 crore in the same period year ago, while for the entire fiscal year, the bank made a total recovery of ₹6,651 crore compared to ₹7,651 crore in the previous fiscal. This significant improvement in asset quality metrics demonstrates the bank's effective risk management strategies and recovery efforts.
For the entire financial year 2025-26, Indian Bank reported a 11% increase in profit at ₹12,156 crore as against ₹10,918 crore in the previous year, as reported by Outlook Business. The bank's total income during FY26 rose to ₹77,441 crore as against ₹71,226 crore a year ago. Net Interest Income (NII) rose to ₹26,915 crore in FY26 from ₹25,176 crore in the previous year. The bank's capital adequacy ratio remained static at 17.93% in FY26, while the bank gave guidance of 11-13% advance growth for the current fiscal year, compared with 10-12% growth projection given for FY26. The bank's advances last year grew 13.4% to ₹6.67 lakh crore at the end of March, while deposits rose 12.3% to ₹8.28 lakh crore with current and savings bank account share at 39.7%.
As reported by Outlook Business, the board has proposed a dividend of ₹18.25 per share (182.50% of face value ₹10 each) for 2025-26, with the bank following the trend for dividend distribution in the current fiscal as well. Regarding capital-raising plans for FY27, Managing Director Binod Kumar said the bank has taken board approval for raising up to ₹5,000 crore through various modes, including Qualified Institutional Placement (QIP) if needed. The bank had similar approval for raising equity capital but did not approach the market to raise capital during FY 2025-26. Despite these global uncertainties, the bank maintains its growth trajectory and risk management strategies to navigate potential market volatility.
According to Outlook Business, the bank has created an additional ₹310 crore provision buffer to cover any likely risk arising out of the West Asia crisis-led supply chain disruptions. Managing Director Binod Kumar noted that the banking sector may face challenges in treasury operations if interest rates harden as a fallout of the West Asia conflict. Despite these global uncertainties, the bank maintains its growth trajectory and risk management strategies to navigate potential market volatility. The bank's capital adequacy ratio remained static at 17.93% in FY26, providing adequate buffer for future growth and risk management requirements.
