Indian Bank delivered strong financial performance in Q3FY26, marking several operational milestones while maintaining robust asset quality metrics. The bank's leadership, including MD & CEO Shri Binod Kumar and the executive team, outlined key achievements during the post-earnings conference call held on January 22, 2026.

Financial Performance Highlights

The bank achieved significant growth across key financial metrics during the quarter:

The operating profit achievement of ₹5,024 crore represents the first time the bank has crossed the ₹5,000 crore milestone, demonstrating strong operational efficiency. The domestic NIM improvement from 3.34% to 3.40% sequentially reflects better yield management.

Business Growth and Portfolio Mix

Total business reached ₹14.30 trillion with a growth rate of 13.34%. The loan portfolio showed balanced expansion across segments:

Deposits grew 12.62% to ₹7.91 trillion, with CASA deposits reaching ₹2.96 trillion, representing a growth of 9.86%. The CD ratio stood at 80.77%, indicating efficient fund deployment.

Asset Quality and Risk Management

The bank maintained excellent asset quality parameters:

Fresh slippages during the quarter were ₹997 crore, while recoveries reached ₹1,453 crore. For the nine-month period, total recoveries amounted to ₹5,153 crore against the guidance range of ₹5,500-6,500 crore. The bank enhanced its provisioning strategy by increasing SMA 1 provisions from 5% to 10%, creating an additional provision buffer of ₹380 crore.

Digital Transformation and Technology Initiatives

Executive Director Shri Ashutosh Choudhury highlighted significant digital progress:

The bank's digital adoption rates improved across segments: liability adoption increased from 37% to 43%, retail assets from 74% to 92%, and agriculture from 83% to 96%. The MSME mobile app, launched in February 2025, has acquired 25,000 customers with transaction value exceeding ₹14,000 crore in Q3.

Capital Position and Strategic Outlook

The bank maintains strong capitalization with CRAR at 16.58% and CET1 at 14.54%. Despite retiring ₹2,000 crore of Tier 1 bonds, management indicated no immediate need for fresh capital raising given the robust capital position. ROA for nine months stood at 1.32%, well above the guidance of 1.20%.

Management expressed confidence in maintaining current growth trajectories while focusing on CASA enhancement and digital adoption. The bank has a corporate credit pipeline of ₹50,000 crore and expects to surpass its annual guidance across key parameters. Cost-to-income ratio remained controlled at 46.90%, reflecting operational efficiency gains.

Indian Bank has issued a formal notice to stock exchanges regarding a potential strike by the United Forum of Bank Unions (U.F.B.U.) scheduled for 27.01.2026. The notification, dated 23.01.2026, was sent to both the National Stock Exchange of India Limited and BSE Limited in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strike Details and Industry Impact

The United Forum of Bank Unions has served notice of their decision to proceed with a strike on various issues and demands. The bank emphasized that both the issues and the strike call are at an industry level, indicating a sector-wide labor action rather than bank-specific concerns.

Bank's Preparatory Measures

Indian Bank has acknowledged the potential operational challenges and stated that branch functioning may be affected if the strike takes place. However, the bank has assured stakeholders that it is implementing necessary preparatory measures.

The key steps being taken include:

• Following existing guidelines for strike situations
• Ensuring smooth functioning of branches and offices
• Implementing contingency plans for the strike day
• Maintaining operational readiness across all locations

Regulatory Compliance

The notification demonstrates Indian Bank's adherence to regulatory requirements under SEBI LODR Regulations. The bank's proactive disclosure ensures that investors and market participants are informed about potential operational disruptions that could impact business activities.

The formal communication was signed by Dina Nath Kumar, Assistant General Manager and Company Secretary, and digitally authenticated on 23.01.2026. This timely disclosure provides stakeholders with advance notice of the potential strike and the bank's preparedness measures to minimize operational impact.