Indian Bank Q4 Results: ₹308 crore provision for West Asia crisis; Board approves fund raise

Indian Bank reported a steady March quarter performance on April 29, with profit growth remaining modest even as the lender took a precautionary hit from global developments. The bank also outlined capital-raising plans and declared a dividend, signalling a balanced approach between growth and prudence.

Net profit for the quarter rose 6.4% year-on-year to ₹3,173 crore, compared with ₹2,982 crore a year ago. Net interest income (NII) increased 11.3% to ₹7,117 crore from ₹6,393 crore, reflecting stable core income growth.

Asset quality improved sequentially, with gross non-performing assets (NPA) declining to 1.98% from 2.23% in the December quarter. Net NPA remained stable at 0.15%.

Provisions, however, rose sharply to ₹1,228 crore from ₹794 crore a year ago, partly due to a ₹308.40 crore provision made in light of the ongoing West Asia crisis.

The bank’s Board recommended a dividend of ₹18.25 per equity share for FY26, subject to shareholder approval. In addition, it approved a plan to raise up to ₹5,000 crore through a mix of qualified institutional placement (QIP), follow-on public offer (FPO), or rights issue, although the bank did not tap similar approval granted earlier in FY26.

Also Read: Indian Overseas Bank Q4 Results: Lower provisions aid profit, asset quality improves

Shares of Indian Bank fell to an intraday low of ₹881.60 following the results, before trimming losses to trade marginally higher at ₹900.65 on the NSE.

The bank’s performance reflects improving asset quality and stable earnings momentum, even as it builds buffers to navigate evolving global uncertainties.