Indian Bank has reported robust financial results for the quarter and financial year ended March 31, 2026. The bank achieved a 12.79% YoY growth in total business, reaching ₹14.95 lakh crore. Net profit for the year grew by 11.33% to ₹12,156 crore. With a significant improvement in asset quality, the Gross NPA ratio dropped to 1.98%, while the capital adequacy ratio remained strong at 17.93%, reflecting a resilient balance sheet.
Key Financial Highlights
For the financial year ended March 31, 2026, Indian Bank recorded a net profit of ₹12,156 crore, marking a growth of 11.33% compared to the previous year. The bank’s operating profit for the same period reached ₹19,916 crore, a 4.83% increase. Net interest income for the full year stood at ₹26,915 crore, reflecting a 6.91% growth.
Business Growth and Portfolio Composition
Total business expanded to ₹14.95 lakh crore, driven by steady growth across sectors. Domestic deposits grew by 12.28% to ₹7.89 lakh crore, while advances grew by 13.43% to ₹6.67 lakh crore. The bank saw notable expansion in its RAM (Retail, Agriculture, and MSME) portfolio, which reached ₹4.04 lakh crore, representing a 15.18% year-on-year growth.
Asset Quality Improvements
Indian Bank demonstrated significant progress in asset quality management. The Gross NPA ratio improved to 1.98%, representing a reduction of 111 bps year-on-year. Furthermore, the Net NPA ratio improved to 0.15%. The Provision Coverage Ratio remains high at 98.28%, underscoring the bank’s conservative provisioning policy and financial stability.
Digital Transformation and Operations
The bank has rapidly expanded its digital footprint, recording ₹2,72,302 crore in digital business during FY26. With 153 digital journeys and processes now active, 94% of transactions are currently being processed through digital channels. The bank continues to invest in IT infrastructure, launching initiatives like IndSMA₹T Biz and real-time AI-driven fraud management systems to enhance customer experience and operational efficiency.
Capital Adequacy and Future Outlook
As of March 31, 2026, the bank maintains a solid Capital to Risk-Weighted Assets Ratio (CRAR) of 17.93%, well above regulatory requirements. Looking ahead, the bank has provided guidance for FY27, targeting deposit growth of 9% – 11% and advance growth in the range of 11% – 13%, aiming to maintain its growth trajectory while keeping asset quality stable.
Source: BSE
