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 YoY growth in advances and deposits.

• Asset quality improved significantly: Gross NPA at 3.09%, Net NPA at 0.19%, and PCR at 98.10%.

• Digital transactions rose to 93% in Q4FY25, with robust growth in digital account openings and product adoption.

• Audited standalone and consolidated financial results for FY25 were approved, with a recommended dividend of ₹16.25 per share.

• Board approved capital raising plans for FY26, including up to ₹12,000 crore via equity, AT-1/Tier-II, and infrastructure bonds.

Financial highlights

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

• Operating profit for FY25 at ₹18,998 crore, up 12.82% YoY; Q4 operating profit at ₹5,019 crore.

• Advances reached ₹5.88 trillion (10.19% YoY growth); deposits at ₹7.37 trillion (7.14% YoY growth).

• NII for FY25 grew 8.2% YoY to ₹25,176 crore; other income up 17.24% YoY.

• Cost-to-income ratio improved to 44.77% for FY25; ROA at 1.32%, ROE at 20.76%.

Outlook and guidance

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

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

• Gross NPA guidance: <3%; net NPA to be maintained at current low levels.

• Recovery target for FY26 set at ₹5,500-6,500 crore; slippage and credit cost both guided to be <1%.

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