Indian Bank reported a net profit of ₹3,273 crore for the first quarter ended June 30, 2026, marking a 10.09% increase from ₹2,973 crore in the corresponding period of the previous year. Total business grew 13.66% year-on-year to ₹15.29 lakh crore, driven by robust growth in advances and deposits. The bank's asset quality improved significantly, with the Gross Non-Performing Assets (GNPA) ratio reducing to 1.86% from 3.01% in Q1FY26, while Net NPA (NNPA) stood at 0.15%. The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter on July 10, 2026.

Key Financial Highlights

The following table summarises the bank's key financial performance metrics for Q1FY27:

Business Performance

Total deposits grew by 13.47% year-on-year to ₹8.44 lakh crore, while gross advances rose 13.89% to ₹6.84 lakh crore. The domestic CASA ratio improved to 39.73% from 38.97% in the previous year. Retail, Agriculture & MSME (RAM) advances grew by 14.80% to ₹4.16 lakh crore, contributing 66% to gross domestic advances. The bank's Capital Adequacy Ratio (Basel III) stood at 17.58%, with a Common Equity Tier 1 (CET 1) ratio of 16.51%.

Asset Quality and Efficiency

The GNPA ratio decreased by 115 basis points YoY to 1.86%, while NNPA reduced by 3 basis points to 0.15%. The Provision Coverage Ratio (PCR) improved to 98.22%. The slippage ratio reduced to 0.77% in Q1FY27 from 0.94% in Q1FY26. The Cost to Income ratio improved by 98 basis points to 44.80%, and the Cost of Funds reduced by 40 basis points to 4.83%.

Management Guidance and Targets

The bank shared its forward-looking operational targets for the financial year. The key guidance parameters are summarised below:

The bank estimates treasury profit for the full year between ₹600 crore and ₹700 crore. On margins, management indicated that the Net Interest Margin is expected to reach the higher range of its guidance band of 3.15% to 3.25%, but noted that margins are currently at a low point, with little further growth anticipated in the absence of rate hikes. The bank has set a recovery goal of ₹4,500 crore to ₹5,500 crore for the year, with ₹1,900 crore already achieved. Indian Bank also plans to raise $1.5 billion to $2 billion through Foreign Currency Non-Resident (FCNR) deposits and External Commercial Borrowings (ECB), while targeting gold loan growth of approximately 15% to 16% for the year.

Digital and Network Expansion

Digital transactions accounted for 95% of total transactions, with business worth ₹67,327 crore generated through digital channels during the quarter. Mobile banking users grew by 22% year-on-year to 2.48 crore. The bank's network included 6,003 domestic branches and 5,676 ATMs & BNAs.

Indian Bank declared a dividend of ₹18.25 per share for the financial year 2025-26 at its twentieth Annual General Meeting held on June 17, 2026. The bank's shareholders approved the dividend, which translates to 182.50% of the paid-up equity capital, alongside the adoption of the audited financial statements for the year ended March 31, 2026. The record date for determining dividend eligibility was fixed as June 10, 2026. In a separate development, the bank has also announced plans to raise $1.5 billion through Foreign Currency Non-Resident [Bank] — FCNR(B) — deposits, signalling continued momentum in its capital mobilisation strategy.

Financial Performance

The bank reported a 12.79% year-on-year growth in total business, which reached ₹14.95 lakh crore. Deposits grew by 12.29% to ₹8.28 lakh crore, while gross advances increased by 13.43% to ₹6.67 lakh crore. Net profit rose by 11% to ₹12,156 crore, supported by a net interest income of ₹26,915 crore. Asset quality improved significantly, with Gross Non-Performing Assets (GNPA) declining to 1.98% and Net Non-Performing Assets (NNPA) reducing to 0.15%.

Key Operational Metrics

The bank maintained a credit-deposit ratio of nearly 81% and a domestic Net Interest Margin (NIM) of 3.36%. Priority Sector Advances constituted 41% of Adjusted Net Bank Credit (ANBC), exceeding the regulatory requirement of 40%. The Capital Adequacy Ratio (CAR) stood strong at 17.93%, while Return on Assets was 1.31% and Return on Equity moderated to 19.53%.

Shareholder Approvals

Shareholders approved the re-appointment of Shri Ashutosh Choudhury as Executive Director for a period of three years effective from May 3, 2026. A special resolution was passed to authorize the Board to raise equity capital aggregating up to ₹5,000 crore, including premium, through Qualified Institutions Placement (QIP), Follow on Public Offer (FPO), Rights Issue, or a combination thereof. The funds will be raised in one or more tranches subject to regulatory approvals.

FCNR(B) Fund Raise

In addition to the approved equity capital raise, Indian Bank has announced plans to mobilise $1.5 billion through FCNR(B) deposits. FCNR(B) accounts are foreign currency-denominated term deposits maintained by Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), and are a common instrument used by Indian banks to attract foreign currency inflows. This latest fundraising initiative further broadens the bank's capital mobilisation efforts alongside the ₹5,000 crore equity raise already approved by shareholders.