Indian Bank has announced robust financial results for the quarter and financial year ended March 31, 2026. The Board of Directors recommended a dividend of Rs. 18.25 per equity share, representing 182.50% of the paid-up capital. Additionally, the Bank has received approval to raise up to Rs. 5,000 crore in equity capital through various market modes to strengthen its capital base for future growth.
Annual Financial Performance
For the financial year ended March 31, 2026, Indian Bank recorded a standalone net profit of Rs. 12,155.65 crore, compared to Rs. 10,918.29 crore in the previous fiscal year. The total income for the year reached Rs. 77,441.29 crore, up from Rs. 71,225.64 crore in the prior year. The bank maintains a healthy capital position with a Capital Adequacy Ratio (Basel III) of 17.93%.
Dividend Recommendation
Reflecting its strong financial performance, the Board of Directors has recommended a dividend of Rs. 18.25 per equity share for the FY 2025-26. This dividend payout is equivalent to 182.50% of the bank’s paid-up equity capital, underscoring the bank’s commitment to delivering value to its shareholders.
Strategic Capital Raising Plan
To support future business expansion, the Board has approved an equity capital raising plan of up to Rs. 5,000 crore. This amount includes share premiums and will be raised through multiple channels, including Qualified Institutional Placement (QIP), Follow-on Public Offer (FPO), or Rights Issue, either independently or in combination. While the bank had similar approval for the previous fiscal year, it did not utilize the market for equity capital raising during that period.
Asset Quality Improvements
Indian Bank has demonstrated significant improvement in asset quality. The Gross NPA ratio for the quarter ended March 31, 2026, improved to 1.98%, down from 3.09% a year ago. The Net NPA ratio also improved to 0.15% from 0.19% in the same period last year, reflecting robust risk management and recovery efforts.
Source: BSE
