New Delhi: Indian Bank has reported a steady performance for Q4 FY26, posting a 5% year-on-year rise in standalone net profit to ₹3,103 crore, supported by stable income growth and continued improvement in asset quality.
The bank’s Board of Directors also recommended a dividend of ₹18.25 per share and approved a plan to raise up to ₹5,000 crore in equity capital through multiple routes.
Q4 FY26 Financial Performance Shows Steady Growth
The bank reported moderate but stable growth in quarterly performance:
- Net Profit: ₹3,103 crore (↑5% YoY)
- Total Income: ₹19,980 crore (↑7.4% YoY)
- Interest Earned: ₹17,480 crore (↑10% YoY)
- Operating Profit: ₹5,286 crore (↑5.3% YoY)
- EPS: ₹23.04 vs ₹21.95 last year
Net Interest Income (NII) also rose to approximately ₹7,110 crore, reflecting strong lending activity.
Read also: Indian Bank Receives AAA Rating from CARE and CRISIL for ₹5,000 Crore Infrastructure Bonds
Full-Year FY26 Performance Strengthens Further
For the full financial year FY26, the bank posted strong annual growth:
- Net Profit: ₹12,156 crore (↑11%)
- Total Income: ₹77,441 crore (↑8.7%)
- Interest Earned: ₹67,451 crore (↑8.8%)
- Operating Profit: ₹19,916 crore (↑4.8%)
The performance highlights sustained improvement in core banking operations.
Dividend of ₹18.25 Per Share Announced
The Board has recommended a dividend of ₹18.25 per equity share, representing 182.5% on face value of ₹10.
- Subject to shareholder approval at AGM
- Record date to be announced later
The payout reflects strong profitability and capital adequacy.
₹5,000 Crore Equity Capital Raise Approved
The bank’s Board also approved raising up to ₹5,000 crore in equity capital through:
- Qualified Institutional Placement (QIP)
- Follow-on Public Offer (FPO)
- Rights Issue
- Or a combination of methods
The move aims to strengthen capital buffers and support future growth.
Asset Quality Sees Significant Improvement
The bank reported notable improvement in stressed assets:
- Gross NPA: 1.98% (down from 3.09%)
- Net NPA: 0.15% (down from 0.19%)
- Provision Coverage Ratio: 98.28%
The decline in NPAs indicates stronger recovery and better credit discipline.
Strong Capital Position and Balance Sheet Expansion
Key financial indicators remain robust:
- Capital Adequacy Ratio: 17.93%
- Return on Assets: 1.31%
- Net Worth: ₹65,628 crore
- Debt-Equity Ratio: 0.34
Balance sheet growth also remained strong:
- Deposits: ₹8.27 lakh crore (↑12%)
- Advances: ₹6.54 lakh crore (↑15%)
- Total Assets: ₹9.87 lakh crore
Provisions Rise Amid Global and Sectoral Risks
Provisions increased to ₹1,228 crore, compared to ₹794 crore last year, partly due to risk-related provisioning linked to global geopolitical uncertainties.
Segment Performance Remains Balanced
Retail, corporate, and treasury segments contributed steadily:
- Retail Banking: ₹1,894 crore
- Corporate Banking: ₹1,597 crore
- Treasury: ₹1,378 crore
- Other Operations: ₹417 crore
Strong Market-Driven Capital and Bond Activity
During FY26, the bank strengthened its capital base through:
- ₹5,000 crore infrastructure bond issuance (7.15% coupon)
- Redemption of AT1 and Tier 2 bonds worth ₹5,000 crore
These measures improved capital structure efficiency.
About Indian Bank
Indian Bank is a major public sector bank headquartered in Chennai, offering a wide range of retail, corporate, and treasury banking services across India. With improving asset quality, strong capital adequacy, and consistent profitability, the bank continues to strengthen its position in the Indian banking sector.
