The fiscal year ending 31 March 2025 marked a milestone in the history of Chennai-headquartered public sector lender Indian Bank, as it reported a record financial performance. For the first time, the bank’s annual net profit crossed Rs 10,000 crore. Indian Bank demonstrated a strong all-round performance in both Q4 and the full financial year FY25, marked by robust growth in profitability, improved asset quality and sustained business momentum. “For the first time, we have crossed a total business figure of Rs 13 lakh crore,” said Binod Kumar, Managing Director & CEO.
For the full year ended 31 March 2025, the bank posted a net profit of Rs 10,918 crore, a sharp rise from Rs 8,063 crore in FY24. In Q4 FY25 alone, net profit rose to Rs 2,956 crore, up from Rs 2,247 crore in the corresponding quarter last year. According to Kumar, FY25 saw a marked improvement in Indian Bank’s Special Mention Account (SMA) book, which tracks early signs of stress in loan accounts. The SMA-2 category, which stood at 15.59 per cent at the end of March 2024, declined sharply to 8.06 per cent by March 2025.
Total business of the bank scaled Rs 13.25 trillion, supported by a strong growth on both quarterly and annual bases. During the fiscal, the bank added Rs 1.03 trillion in total business, including Rs 60,000 crore in Q4 alone. Total deposits stood at Rs 7.37 lakh crore, up 7 per cent YoY. In FY25, Indian Bank opened about 55 lakh savings bank accounts and 1.58 lakh current accounts. “The average balance in new accounts increased from Rs 21,000 in Q4 last year to Rs 30,000 this year, which is a positive development,” Kumar noted.
The RAM (Retail, Agriculture, MSME) portfolio crossed Rs 3.5 lakh crore, registering a 13 per cent YoY growth — driven by 14 per cent growth each in retail and agriculture, and 12 per cent growth in MSME. Asset quality saw a further improvement. Gross NPA declined from 3.26 per cent to 3.09 per cent sequentially, and Net NPA reduced from 0.21 per cent to 0.19 per cent.
The board of Indian Bank has approved fund-raising plans totalling Rs 12,000 crore: Rs 5,000 crore via equity (through QIP, FPO, rights issue, or a combination), Rs 2,000 crore via Basel III-compliant AT-1 perpetual or Tier-2 bonds, and Rs 5,000 crore via infrastructure bonds. Looking ahead, the bank projects a deposit growth in the range of 8 per cent to 10 per cent and advances growth between 11 per cent and 15 per cent.
