Chennai-based Indian Bank has set a new benchmark with its stellar performance in the fourth quarter of fiscal year 2025 (January–March 2025), reinforcing its position as a leading public sector lender.
The bank reported a robust 32% year-on-year (YoY) increase in standalone net profit, reaching ₹2,956 crore, up from ₹2,247 crore in Q4 FY24. This growth was driven by strong operational efficiency and improved asset quality, reflecting the bank’s strategic focus on sustainable growth.
Indian Bank’s net interest income (NII) rose by 6.2% to ₹6,389 crore, compared to ₹6,015 crore in the same quarter last year. Operating profit also saw a healthy 17% YoY increase, climbing to ₹5,019 crore from ₹4,305 crore.
The bank’s return on equity (RoE) improved significantly by 195 basis points to 21.01%, while return on assets (RoA) rose by 22 basis points to 1.37%. These metrics underscore Indian Bank’s ability to optimize its resources and deliver value to stakeholders.
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Indian Bank announces record dividend
A key highlight of the Q4 results was the bank’s announcement of a record dividend of ₹16.25 per equity share, equivalent to 162.5% of its paid-up equity capital, the highest payout in its history. This dividend, subject to shareholder approval at the 19th Annual General Meeting on June 17, 2025, reflects the bank’s confidence in its financial health.
Indian Bank Dividend Record Date
The record date for the dividend is set for June 10, 2025, ensuring eligible shareholders benefit from this generous reward. Indian Bank’s total deposits grew by 7% YoY to ₹7,37,154 crore as of March 2025, while retail, agriculture, and MSME advances surged by 13% to ₹3,50,876 crore.
The capital adequacy ratio stood at a robust 17.94%, with CET-1 at 15.36%, indicating a strong buffer for future growth. The bank’s global business crossed ₹13.25 lakh crore, supported by its extensive network of 5,901 domestic branches and 14,667 business correspondents.
Analysts attribute Indian Bank’s success to its disciplined lending practices and digital transformation initiatives. “The bank’s focus on retail and MSME segments, coupled with prudent risk management, has paid off,” said a Mumbai-based financial analyst.
Indian Bank Stock Surges After Q4 2024-25 Results
The stock responded positively, gaining 4.19% to ₹581.50 on the announcement day, signaling investor confidence. Looking ahead, Indian Bank plans to raise up to ₹7,000 crore in capital to fuel expansion, further strengthening its balance sheet.
With a legacy dating back to 1907, the bank continues to blend tradition with innovation, positioning itself as a trusted partner for millions of customers across India.
