Indian Bank (INDIANB) Q4 25/26 earnings summary

Executive summary

• Achieved strong year-over-year growth in advances (13.43%) and deposits (12.29%), surpassing most guidance targets, with net profit for FY26 rising 11.33% to ₹12,156 crore and operating profit up 4.83%.

• Asset quality improved significantly: gross NPA reduced to 1.98% (down 111 bps YoY), net NPA at 0.15%, and provision coverage ratio at 98.28%.

• Digital business grew 63%–1.7x YoY, with 97% of retail and agri loans sanctioned digitally and robust expansion in digital home, vehicle, MSME, and jewel loans.

• Board approved audited results for FY26, recommended a ₹18.25/share dividend, and approved an equity capital raise up to ₹5,000 crore.

• Auditors issued unmodified opinions on financial statements.

Financial highlights

• Net profit for Q4 was ₹3,103 crore; full-year net profit at ₹12,156 crore (up 11.33% YoY); standalone total income for FY26 was ₹77,441.29 crore.

• Operating profit for Q4 at ₹5,286 crore; full-year operating profit at ₹19,916 crore (up 4.83%).

• Net Interest Income (NII) for Q4 at ₹7,109 crore; full-year NII at ₹26,915 crore (up 6.91% YoY).

• NIM for FY26 at 3.24% overall, 3.36% domestic; cost-to-income ratio for FY26 at 46.03%.

• Return on Assets for FY26 at 1.31%; Return on Equity at 19.53%.

Outlook and guidance

• FY27 guidance: deposit growth 9–11%, advances 11–13%, CASA ~40%, CDR ~80%, GNPA <1.6%, NNPA <0.2%, NIM 3.10–3.25%, ROA 1.20–1.30%, credit cost and slippage ratio both below 1%.

• Recovery guidance between ₹4,500–5,500 crore; focus remains on maintaining asset quality and margins over aggressive growth.

• Board approved raising up to ₹5,000 crore in equity capital.