Indian Bank (INDIANB) Q4 25/26 earnings summary

Executive summary

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

• Asset quality improved significantly: gross NPA reduced to 1.98% (down 111 bps YoY), net NPA to 0.15%.

• Digital business grew 63% to INR 2.72 lakh crore, with 97% digital adoption in retail and agri loans; recognized for digital innovation and inclusion.

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

• Auditors issued unmodified opinions on financial statements.

Financial highlights

• Advances grew 13.43% YoY to ₹6.67 lakh crore, led by RAM sector (15.28%) and corporate (9.19%).

• Deposits grew 12.29% YoY to ₹8.28 lakh crore; CASA ratio maintained near 40%.

• Net profit for FY26 was ₹12,156 crore (up 11.33% YoY); operating profit reached ₹19,916.10 crore.

• NII for FY26 grew 6.91% to ₹26,915 crore; NIM at 3.24% overall.

• Cost-to-income ratio for FY26 at 46.03%; RoA at 1.31%; RoE at 19.53%.

Outlook and guidance

• FY27 guidance: deposit growth 9%-11%, advance growth 11%-13%, CASA ~40%, CDR ~80%.

• Gross NPA expected between 1.50%-1.60%, net NPA below 0.2%-0.25%.

• NIM guidance 3.10%-3.25%, ROA 1.20%-1.30%, credit cost and slippage ratio both below 1%.

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