Indian Bank has announced robust financial results for the quarter and year ended March 31, 2026. The Board of Directors has recommended a dividend of Rs. 18.25 per equity share (182.50%) for FY 2025-26. Additionally, the bank has received approval to raise up to Rs. 5,000 crore in equity capital through various modes, including QIP, FPO, or a rights issue, to support future growth and capital requirements.
Annual Financial Performance
For the financial year ended March 31, 2026, Indian Bank reported a standalone net profit of Rs. 12,155.65 crore, compared to Rs. 10,918.29 crore in the previous fiscal year. The bank’s total standalone income reached Rs. 77,441.29 crore for the year, showing sustained growth. The consolidated net profit for the same period stood at Rs. 11,704.28 crore.
Dividend Recommendation
Recognizing the strong performance during the year, the Board of Directors has recommended a dividend of Rs. 18.25 per equity share, translating to 182.50% of the paid-up equity capital for the Financial Year 2025-26. This reflects the bank’s commitment to delivering consistent value to its shareholders.
Capital Raising Strategy
To further strengthen its capital base, the Board has approved a plan to raise equity capital of up to Rs. 5,000 crore (including premium). This capital will be raised through multiple modes such as QIP (Qualified Institutional Placement), FPO (Further Public Offering), or Rights Issue, either independently or in combination. It is noteworthy that while the bank held a similar approval in the previous fiscal year, it did not need to access the market for equity capital during FY 2025-26.
Asset Quality Improvements
The bank has demonstrated improved asset quality, with the Gross NPA ratio standing at 1.98% as of March 31, 2026, down from 3.09% in the same quarter last year. The Net NPA ratio also improved to 0.15%. The bank maintains a high Provision Coverage Ratio of 98.28%, underscoring its prudent risk management framework.
Source: BSE
