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Indian Bank Profit Surges 5% Amidst Declining Bad Loans
29 Apr
Summary
- Net profit rose 5% to Rs 3,103 crore in Q4 FY26.
- Gross NPAs decreased to 1.98% from 3.09% year-on-year.
- Bank plans to raise up to Rs 5,000 crore in FY27.
State-owned Indian Bank announced a 5% rise in net profit for the fourth quarter of the 2025-26 fiscal year, reaching Rs 3,103 crore, an improvement from Rs 2,956 crore in the same period last year. This growth was significantly aided by a notable decline in the bank's non-performing assets (NPAs).
Total income for the quarter increased to Rs 19,980 crore from Rs 18,599 crore a year prior. Interest income also saw an upward trend, growing to Rs 17,480 crore. The bank's Net Interest Income (NII) improved to Rs 7,109 crore from Rs 6,389 crore in the corresponding quarter of the previous financial year.
Asset quality showed marked improvement, with gross NPAs reducing to 1.98% of gross advances, down from 3.09%. Net NPAs also decreased to 0.15% from 0.19%. Provisions for bad loans consequently fell to Rs 748 crore from Rs 1,100 crore year-on-year.
Looking ahead, Indian Bank has secured board approval to raise up to Rs 5,000 crore in FY27 through various means, including Qualified Institutional Placement (QIP). The board has also proposed a dividend of Rs 18.25 per share for the 2025-26 fiscal year.
