Outcome of Board Meeting - Audited Financial Results for the fourth quarter and financial year ended on March 31, 2025
Awaiting price reaction for this filing.
Indian Bank reported strong FY25 results with total income rising about 12% to Rs. 71,225 crore from Rs. 63,482 crore a year ago. Net profit jumped roughly 35% to Rs. 10,918 crore versus Rs. 8,063 crore in FY24, and Q4 standalone net profit grew about 32% YoY to Rs. 2,956 crore. Earnings per share rose to Rs. 81.06 from Rs. 63.23, and return on assets improved to 1.32% from 1.07%. Asset quality strengthened sharply with gross NPA ratio falling to 3.09% (from 3.95%) and net NPA ratio dropping to 0.19% (from 0.43%), backed by a 98.10% provision coverage ratio. The Board recommended a dividend of Rs. 16.25 per share (162.5% of paid-up capital) and approved plans to raise up to Rs. 5,000 crore of equity capital and Rs. 2,000 crore of AT-1/Tier-2 bonds, noting it had not tapped the market in FY25 despite similar prior approval. The statutory auditors issued an unmodified (clean) opinion on the results.
Strong profit growth, improved margins, and a sharp drop in NPAs signal healthy fundamentals, which is positive for shareholders. The dividend is healthy and the proposed capital raise supports future lending growth, though equity dilution could pressure share price in the short term.