Indian Bank Q4 profit surges 32% YoY, board recommends dividends, approves ₹7,000 crore capital raising plan

Indian Bank on Saturday, May 3, reported a 31.55% year-on-year (YoY) increase in its standalone net profit to ₹2,956.07 crore in the March quarter of FY25, compared to ₹2,247 crore in the corresponding period last year.

Its net interest income (NII) stood at ₹6,389 crore in the quarter under review, jumping 6% YoY from ₹6,015 crore in the fourth quarter of the 2023-24 financial year (Q4FY24).

The public sector bank’s asset quality improved as its gross non-performing asset (GNPA) contracted by 86 bps to 3.09% in the December-March quarter of FY25, as against 3.95% last year. Its net non-performing assets (NNPA) also declined to 0.19%, down 24 bps from 0.43% in Q4FY24.

Indian Bank’s capital adequacy ratio improved by 2 bps to 1.09% in the quarter ended March 31, 2025.

The board of Indian Bank recommended a dividend of ₹16.25 per equity share at 162.50 % of the paid-up equity capital of the bank for the financial year 2024-25.

Its board also approved a plan to raise capital aggregating to ₹7,000 crore, including raising equity capital worth ₹5,000 crore via QIP, FPO, right issue or a combination of them and raising AT-1 or Tier-2 Capital worth ₹2,000 crore. The ₹2,000 crore will be raised through issuing “Basel III Compliant AT-1 Perpetual Bonds / Tier 2 Bonds in one or more tranches during the current or subsequent financial years based on the requirement,” the bank said in a statement.

The bank had 5,901 domestic branches, including three Digital Banking Units (DBUs), 1,992 in rural, 1,555 in semi-urban, 1,182 in urban and 1,172 in metro categories.

Shares of Indian Bank closed in the red at ₹558.10 apiece, down 1.36% on the National Stock Exchange (NSE) on Friday, May 2, a day before the result announcement.