Indian Bank (INDIANB) Q4 24/25 earnings summary

Executive summary

• Achieved record total business of ₹13.25 trillion and net profit of ₹10,918 crore for FY25, with strong growth in advances and deposits year-over-year.

• Significant reduction in SMA book from 15.59% to 8.06% YoY, reflecting improved asset quality.

• Surpassed all RBI-mandated priority sector lending targets and expanded financial inclusion initiatives.

• Recognized with multiple awards for technology, financial inclusion, and customer service.

• Audited standalone and consolidated financial results for Q4 and FY ended March 31, 2025, were approved, with a recommended dividend of ₹16.25 per share.

Financial highlights

• Net profit for FY25 was ₹10,918 crore, up 35.41% YoY; Q4 net profit at ₹2,956 crore.

• Total business reached ₹13.25 trillion, deposits at ₹7.37 trillion (7.14% YoY), advances at ₹5.88 trillion (10.19% YoY).

• NII for FY25 was ₹25,176 crore, up 8.17% YoY; operating profit at ₹18,998 crore, up 12.82% YoY.

• Gross NPA reduced to 3.09% (down 86 bps YoY); net NPA at 0.19%; PCR at 98.10%.

• CASA ratio at 40.17%; cost-to-income ratio improved to 44.77%; RoA at 1.32%, RoE at 20.76%.

Outlook and guidance

• FY26 deposit growth guidance: 8%-10%; advances: 10%-12%.

• Board approved equity and bond raising plan of up to ₹12,000 crore for FY26.

• NIM guidance revised to 3.15%-3.30% due to expected further rate cuts; ROA guidance at 1.20% for FY26.

• Gross NPA guidance: <3%; net NPA to be maintained at current low levels; slippage and credit cost both guided to be <1%.

• Focus on digital expansion, asset quality improvement, and sustainable growth.