Indian Bank Reports 11% Profit Growth in FY26; Asset Quality Improves

Chennai: Indian Bank reported a strong financial performance for FY26, with net profit rising 11.33% year-on-year to ₹12,156 crore, driven by steady credit growth and improved asset quality.

The bank’s total business grew 12.79%, supported by robust momentum across retail, agriculture, MSME and corporate segments. Gross advances increased 13.43% to ₹6.67 lakh crore, while deposits rose 12.29% to ₹8.27 lakh crore. CASA ratio remained healthy at 39.67%.

For the March 2026 quarter, net profit stood at ₹3,103 crore, up 4.97% year-on-year. Net interest income grew 11.27% to ₹7,109 crore, while operating profit rose 5.32% to ₹5,286 crore. Fee-based income also saw strong growth of 19%.

Asset quality improved significantly, with gross NPAs declining to 1.98% from 3.09% a year ago, and net NPAs easing to 0.15%. Provision coverage ratio strengthened to 98.28%.

The bank reported stable profitability metrics, with return on equity at 18.98% and return on assets at 1.28% for the quarter. Capital adequacy stood at 17.93%.

Digital banking continued to gain traction, with ₹2.72 lakh crore business generated through digital channels in FY26. Mobile banking users grew 22% to 2.36 crore, while UPI users rose 21% to 2.64 crore.

Indian Bank operates over 6,000 branches across India along with overseas presence, continuing to expand its reach and digital capabilities.