Indian Bank Posts Strong FY26 Performance with ₹12,156 Crore Profit; Asset Quality, Digital Growth and Returns Improve
Chennai, April 30, 2026: Indian Bank MD & CEO, Binod Kumar today announced Q4 F Y 25-26 Results (Financial Results for the Quarter and Full Year ended 31st March 2026). He said that the Bank has achieved a robust financial performance for the quarter and full year ended March 31, 2026, underpinned by steady growth in business, improved asset quality, and enhanced profitability.
The Bank’s total business registered a healthy growth of 12.79% year-on-year, driven by strong credit expansion across Retail, Agriculture, MSME and Corporate segments. Credit sanctions witnessed a sharp surge of 62%, reflecting broad-based demand across sectors.
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For FY26, the Bank posted a net profit of ₹12,156 crore, marking an 11.33% increase over the previous year. Quarterly net profit for March 2026 stood at ₹3,103 crore, up 4.97% year-on-year and 1.37% sequentially.
Operating profit for the March quarter rose 5.32% to ₹5,286 crore, while Net Interest Income (NII) grew by 11.27% to ₹7,109 crore. Fee-based income also showed strong traction, rising 19.04% to ₹1,092 crore, highlighting improved non-interest revenue streams.
Margins and efficiency indicators reflected positive trends. The Bank’s domestic Net Interest Margin (NIM) stood at 3.35% for the quarter, while cost metrics improved with Cost of Deposits declining to 4.83% and Cost of Funds to 4.88%. The Cost-to-Income ratio improved to 44.99%, indicating better operational efficiency.
On the balance sheet front, gross advances grew 13.43% to ₹6.67 lakh crore, led by strong momentum in the RAM segment (Retail, Agriculture and MSME), which expanded by 15.18% and contributed 65.45% to domestic advances. Within this, retail advances grew 18.72%, MSME 16.39%, and agriculture 11.28%, while home loans recorded a 13.39% increase.
Total deposits rose 12.29% to ₹8.27 lakh crore, supported by steady CASA growth. The domestic CASA ratio remained strong at 39.67%, reinforcing a stable and low-cost deposit base.
Asset quality improved significantly, with Gross Non-Performing Assets (GNPA) declining to 1.98% from 3.09% a year ago. Net NPA stood at a low 0.15%, while the Provision Coverage Ratio strengthened to 98.28%. The slippage ratio also improved to 0.96%, reflecting tighter risk management practices.
The Bank maintained strong capital buffers, with a Capital Adequacy Ratio of 17.93% and CET-1 ratio improving to 16.40%. Return ratios remained healthy, with Return on Assets (RoA) at 1.31% for FY26 and Return on Equity (RoE) at 18.98%.
Digital banking continued to be a key growth driver, with business worth ₹2.72 lakh crore generated through digital channels during the year. The Bank expanded its digital ecosystem by launching 153 journeys and processes. Mobile banking users grew 22% year-on-year to 2.36 crore, while UPI users reached 2.64 crore, reflecting increasing customer adoption of digital platforms.
The Bank’s network remains extensive, with 6,001 domestic branches, including a strong rural and semi-urban presence, along with 5,657 ATMs and over 17,000 business correspondents, supporting financial inclusion initiatives.
During the year, the Bank earned multiple recognitions, including the Golden Peacock Award for Excellence in Artificial Intelligence and several technology and digital innovation accolades, underscoring its focus on transformation and customer-centric innovation.
Looking ahead, Indian Bank emphasized its commitment to sustained growth, strong governance, and digital acceleration. The Bank stated that its focus on asset quality, operational efficiency, and technology-led customer experience will continue to drive long-term value creation.
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