Indian Bank
NII growth improves: Interest income increased 10% to Rs 17480.39 crore, while interest expenses moved up 10% to Rs 10370.88 crore in Q4FY2026. NII improved 11% to Rs 7109.51 crore in Q4FY2026.
Margins eases: The bank has shown 27 bps YoY decline in cost of deposits to 4.83%, while yield on advances declined 57 bps YoY to 8.07% in Q4FY2026. Thus, the NIM has eased 14 bps YoY to 3.23%, while fell 5 bps qoq to 3.23% in Q4FY2026.
Healthy growth in the core fee income: The non-interest income of the bank declined 9% to Rs 2499.68 crore in Q4FY2026. Bank has posted strong 19% growth in core fee income to Rs 1092 crore and forex income moved up 12% to Rs 200 crore. The treasury income dipped 97% to Rs 6 crore, while recoveries income eased 27% to Rs 555 crore and other income fell 6% to Rs 647 crore.
Expense ratio steady: The operating expenses of the bank increased 5% to Rs 4323.46 crore, as other expenses moved up 14% to Rs 1611.81 crore, while employee expenses were flat at Rs 2711.65 crore in Q4FY2026. Cost to income ratio was steady at 45.0% in Q4FY2026 compared with 45.0% in Q4FY2025. Operating Profit moved up 5% to Rs 5285.73 crore.
Provisions and contingencies increase: The bank has shown 54% increase in provisions to Rs 1226 crore. The loan loss provisions fell 32% to Rs 748 crore. However, the investment provisions rebounded to Rs 18 crore and standard asset provisions bounced bank to Rs 492 crore in Q4FY2026.
PBT declined 4% to Rs 4059.97 crore in Q4FY2026. Effective tax rate declined to 23.6% in Q4FY2026 from 30.0% in Q4FY2025. Net Profit increased 5% YoY to Rs 3103.13 crore in Q4FY2026.
Asset quality improves: The bank has improved asset quality in Q4FY2026.
The fresh slippages of loans stood at Rs 1395 crore in Q4FY2026 compared with Rs 1007 crore in previous quarter and Rs 1431 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs stood at Rs 600 crore, while the write-off of loans was at Rs 1874 crore in Q4FY2026. The standard restructured loan book of the bank declined to Rs 2381 crore end March 2026 compared to Rs 2782 crore a quarter ago. Provision coverage ratio was strong at 98.28% at end March 2026 compared to 98.28% a quarter ago and 98.10% a year ago. The capital adequacy ratio of the bank stood at 17.9% with Tier I ratio at 16.4% at end March 2026. The risk weighted assets of the bank has increased 7% YoY to Rs 437546 crore end March 2026.| Asset Quality Indicators: Indian Bank | ||||||||
| ? | Mar-26 | Dec-25 | Sep-25 | Jun-25 | Mar-25 | Variation | ? | |
| QoQ | YoY | ? | ||||||
| Gross NPA (Rs Crore) | 13190.02 | 14268.38 | 16134.66 | 18066.88 | 18178.86 | -8 | -27 | ? |
| Net NPA (Rs Crore) | 964.88 | 967.55 | 982.98 | 1035.56 | 1190.56 | 0 | -19 | ? |
| % Gross NPA | 1.98 | 2.23 | 2.60 | 3.01 | 3.09 | -25 | -111 | ? |
| % Net NPA | 0.15 | 0.15 | 0.16 | 0.18 | 0.19 | 0 | -4 | ? |
| % PCR | 98.28 | 98.28 | 98.28 | 98.20 | 98.10 | 0 | 18 | ? |
| % CRAR - Basel III | 17.93 | 16.58 | 17.31 | 17.80 | 17.94 | 135 | -1 | ? |
| % CRAR - Tier I - Basel III | 16.40 | 14.54 | 15.27 | 15.74 | 15.36 | 186 | 104 | ? |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
Business Highlights:
Business growth eases: The business of the bank has increased at a slower pace of 13% YoY to Rs 1494839 crore end March 2026, as advances growth eased to 13% to Rs 667113 crore and deposits growth moderated to 12% to Rs 827726 crore at end March 2026. With the faster growth in advances, the credit to deposit ratio rose to 80.6% at end March 2026 from 79.8% at end March 2025.
CASA deposits ratio improves qoq: The CASA deposits of the bank increased 11% YoY to Rs 313548 crore at end March 2026. The current account deposits moved up 12% to Rs 42407 crore, while saving account deposits increased 11% to Rs 253274 crore end March 2026. The CASA ratio eased to 37.9% at end March 2026 compared to 38.4% at end March 2025, while increased from 37.4% at end December 2025. The term deposits have increased 13% to Rs 514178 crore end March 2026.
Strong loan growth: Within the loan book, the retail loans increased 19% YoY to Rs 141396 crore at end March 2026, while credit to agriculture increased 11% to Rs 153150 crore and MSME credit increased 16% to Rs 109580 crore. The corporate credit has also increased 9% to Rs 213359 crore end March 2026. The overseas credit has increased 19% to Rs 49628 crore end March 2026. The share of retail, agriculture and MSME (RAM) improved to 60.6% at end March 2026 compared to 59.7% at end March 2025
Investment book of the bank increased 9% YoY to Rs 242485 crore at end March 2026. The SLR book moved up 10% to Rs 195814 crore, while non SLR book rose 4% to Rs 46672 crore at end March 2026. The AFS book dipped 9% to Rs 61738 crore, while HTM book rose increased 17% to Rs 159890 crore at end March 2026. The duration of the AFS investment portfolio stood at 3.25 years end March 2026 compared with 3.21 years at end March 2025.
Branch expansion: The bank has added 36 branches and added 33 ATMs in Q4FY2026, taking overall tally to 6001 branches and 5657 ATM`s end March 2026.
Book value of the bank stood at Rs 528.8 per share at end March 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 517.2 per share at end March 2026.
Financial Performance FY2026:
Bank has posted 11% increase in net profit to Rs 12155.65 crore in the year ended March 2026 (FY2026). The net interest income increased 7% to Rs 26914.92 crore, while non-interest income moved up 8% to Rs 9990.58 crore, leading net total income to increase 7% to Rs 36905.50 crore in FY2026. The operating expenses increased 10% to Rs 16989.40 crore, while provision and contingencies dipped 17% to Rs 3512.38 crore. PBT increased 11% to Rs 16403.72 crore in FY2026. The cost-to-income ratio rose to 46.0% in FY2026 compared to 44.8% in FY2025. An effective tax rate eased to 25.9% in FY2026 compared to 26.2% in FY2025. The net profit has increased 11% to Rs 12155.65 crore in FY2026.| Indian Bank: Results | ||||||
| Particulars | 2603 (3) | 2503 (3) | Var % | 2603 (12) | 2503 (12) | Var % |
| Interest Earned | 17480.39 | 15855.89 | 10 | 67450.71 | 62002.16 | 9 |
| Interest Expended | 10370.88 | 9466.55 | 10 | 40535.79 | 36825.79 | 10 |
| Net Interest Income | 7109.51 | 6389.34 | 11 | 26914.92 | 25176.37 | 7 |
| Other Income | 2499.68 | 2743.27 | -9 | 9990.58 | 9223.48 | 8 |
| Net Total Income | 9609.19 | 9132.61 | 5 | 36905.50 | 34399.85 | 7 |
| Operating Expenses | 4323.46 | 4113.94 | 5 | 16989.40 | 15401.65 | 10 |
| Operating Profits | 5285.73 | 5018.67 | 5 | 19916.10 | 18998.20 | 5 |
| Provisions & Contingencies | 1225.76 | 794.60 | 54 | 3512.38 | 4211.27 | -17 |
| Profit Before Tax | 4059.97 | 4224.07 | -4 | 16403.72 | 14786.93 | 11 |
| Provision for tax | 956.84 | 1268.00 | -25 | 4248.07 | 3868.64 | 10 |
| PAT | 3103.13 | 2956.07 | 5 | 12155.65 | 10918.29 | 11 |
| EPS*(Rs) | 92.2 | 87.8 | ? | 90.2 | 81.1 | ? |
| Equity | 1347.0 | 1347.0 | ? | 1347.0 | 1347.0 | ? |
| Adj BV (Rs) | 517.2 | 446.1 | ? | 517.2 | 446.1 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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