Indian Bank Posts 5% Growth in Q4 Net Profit, Declares Dividend of Rs 18.25 Per Share for FY26

Indian Bank Reports 5% Increase in Net Profit for Q4 2025-26

State-owned Indian Bank has reported a 5% increase in net profit to Rs 3,103 crore for the fourth quarter of 2025-26, driven by a decline in bad loans. This marks a significant improvement from the year-ago period, when the bank earned a net profit of Rs 2,956 crore.

The Chennai-based lender's total income increased to Rs 19,980 crore in the quarter, up from Rs 18,599 crore a year ago. Interest income grew to Rs 17,480 crore from Rs 15,856 crore in the fourth quarter of the previous financial year. Net Interest Income (NII) also improved to Rs 7,109 crore from Rs 6,389 crore in the same period a year ago.

Key Financial Highlights for Q4 2025-26

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Indian Bank's Managing Director and CEO, Binod Kumar, stated that 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 has not approached the market to raise capital during FY 2025-26. Kumar also announced 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.

On the asset quality front, the bank's gross Non-Performing Assets (NPAs) moderated to 1.98% of gross advances as compared to 3.09% by the end of March 2025. Net NPAs came down to 0.15% of the net advances over 0.19% 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.

For the entire fiscal year 2025-26, the bank reported a 11% 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% for the year ended March 2026.

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