Indian Bank (INDIANB)
₹854.10 +2.29% last close, 16 Oct
Latest quarterly results (Q3 FY26)
In its latest reported quarter, Q3 FY26, Indian Bank's revenue was ₹17,102 Cr (+8.4% year on year, +2.9% on the previous quarter), and net profit ₹3,148 Cr (+8.2% year on year).
| Q3 FY26 (₹ Cr) | Value | YoY vs Q3 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹17,102 | +8.4% | +2.9% |
| Net profit | ₹3,148 | +8.2% | +1.3% |
| EPS (₹) | 23.36 | +8.1% | +1.3% |
INDIANB delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 47.0% of the INDIANB shares traded on NSE were taken to delivery, against the stock's own 20-session average of 48.23%. That is close to its usual level. It traded 2.1 times its average daily volume. In INDIANB futures, open interest rose 0.98% while the futures price rose 2.23%: long buildup (new long positions).
Delivery in the last 5 sessions: 46.7% · 53.9% · 36.5% · 16.6% · 47.0%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Indian Bank has informed exchanges that the audio and video recording of its post-earnings concall with investors and analysts has been uploaded to its official website. The bank refers to its earlier schedule notification dated October 12, 2026. This is a standard regulatory compliance filing under SEBI LODR Regulations, 2015. No new financial results or operational updates were included directly in the disclosure text.
- Audio/video recording of the post-earnings concall made available online on 15.10.2026
- Follow-up to previous schedule intimation letter ISC/403/2026-27 dated 12.10.2026
- Procedural filing under SEBI LODR Regulations without financial metrics
During the RBI Inspection for Supervisory Evaluation (ISE) 2026, the regulator adjusted Indian Bank's capital adequacy metrics as of March 31, 2026. The RBI disallowed Rs 2,470 crore from Tier 2 capital (incorrect inclusion of specific provisions) and increased Credit Risk Weighted Assets (RWA) by Rs 22,192 crore due to omission of Credit Conversion Factor on undrawn exposures. Consequently, RBI assessed Total CRAR at 16.53% (versus 17.93% reported) and CET-1 CRAR at 15.61% (versus 16.40% reported). The bank stated there is zero impact on net profit and CRAR remains well above regulatory minimums, with adjustments already incorporated in Q2 FY27 (Sep 30, 2026) metrics.
- Total CRAR revised down by 140 bps to 16.53% from 17.93% following RBI ISE 2026 assessment
- Credit RWA increased by Rs 22,192 crore to Rs 398,512 crore due to CCF application on undrawn credit lines
- Tier 2 Capital lowered by Rs 2,470 crore to Rs 4,234 crore as specific provisions were wrongly included in GPLR
- Common Equity Tier 1 (CET 1) capital stayed unchanged at Rs 71,764 crore, though CET-1 CRAR lowered to 15.61%
- Bank confirms zero impact on reported Net Profit for FY26; adjustments factored into Sep 30, 2026 numbers
Indian Bank reported a 14.71% YoY increase in standalone net profit to ₹3,462 crore for Q2FY27, up from ₹3,018 crore in Q2FY26. Net Interest Income grew 17.83% YoY to ₹7,719 crore, supported by a domestic net interest margin (NIM) of 3.42%. Total gross advances climbed 16.39% YoY to ₹7,21,982 crore, while total deposits expanded 12.50% YoY to ₹8,74,036 crore. Asset quality showed continued strengthening, with the Gross NPA ratio improving by 99 bps YoY to 1.61% and Net NPA declining to 0.14%.
- Q2FY27 Net Profit increased 14.71% YoY to ₹3,462 Cr (Operating Profit grew 46.58% YoY to ₹7,090 Cr)
- Net Interest Income rose 17.83% YoY to ₹7,719 Cr with domestic NIM at 3.42%
- Total advances grew 16.39% YoY to ₹7.22 lakh Cr, driven by 17.74% YoY growth in RAM segment (₹4.42 lakh Cr)
- Gross NPA declined to 1.61% (vs 2.60% in Sep-25), with Net NPA reaching 0.14% and PCR at 98.22%
- Total deposits increased 12.50% YoY to ₹8.74 lakh Cr, with domestic CASA ratio at 39.36%
Indian Bank reported a 14.71% YoY growth in net profit to ₹3,462 Cr for Q2 FY27, up from ₹3,018 Cr in Q2 FY26. Operating profit grew significantly by 46.58% YoY to ₹7,090 Cr, driven by a 17.83% increase in Net Interest Income to ₹7,719 Cr and a 59% rise in non-interest income to ₹3,953 Cr. Gross advances expanded 16.39% YoY to ₹7,21,982 Cr, led by 17.74% growth in RAM advances. Asset quality continued to improve, with GNPA reducing by 99 bps YoY to 1.61% and NNPA declining to 0.14%.
- Net Profit up 14.71% YoY to ₹3,462 Cr in Q2 FY27 from ₹3,018 Cr in Q2 FY26
- Net Interest Income rose 17.83% YoY to ₹7,719 Cr, with domestic NIM at 3.42%
- Operating Profit surged 46.58% YoY to ₹7,090 Cr aided by a 59% jump in non-interest income
- GNPA dropped 99 bps YoY to 1.61% and NNPA stood at 0.14%, with PCR at 98.22%
- Cost-to-income ratio improved sharply by 555 bps QoQ to 39.25%
Indian Bank reported a 14.7% YoY increase in standalone net profit to ₹3,462.24 crore for Q2 FY27, up from ₹3,018.22 crore in Q2 FY26. Total income grew 20.9% YoY to ₹23,058.62 crore, supported by strong treasury operations and retail banking. Asset quality improved substantially with Gross NPA dropping to 1.61% (from 2.60% a year ago) and Net NPA falling to 0.14%. Additionally, the board approved raising up to ₹7,000 crore via long-term infrastructure bonds (up to ₹5,000 crore) and Basel III AT1/Tier-2 bonds (up to ₹2,000 crore).
- Net profit up 14.7% YoY to ₹3,462.24 crore in Q2 FY27 compared to ₹3,018.22 crore in Q2 FY26
- Gross NPA declined 99 bps YoY to 1.61%, with Net NPA improving to 0.14%
- Total income increased 20.9% YoY to ₹23,058.62 crore
- Capital Adequacy Ratio (CRAR) stood at 16.21% (CET-1 at 15.18%) as of September 30, 2026
- Board approved non-equity capital raise of up to ₹5,000 crore via Infra Bonds and up to ₹2,000 crore via AT1/Tier-2 Bonds
Indian Bank reported a 14.7% YoY increase in standalone net profit to ₹3,462.24 crore for Q2 FY27, up from ₹3,018.22 crore in Q2 FY26. Total income grew 20.9% YoY to ₹23,058.62 crore, supported by strong treasury operations and retail banking. Asset quality improved substantially with Gross NPA dropping to 1.61% (from 2.60% a year ago) and Net NPA falling to 0.14%. Additionally, the board approved raising up to ₹7,000 crore via long-term infrastructure bonds (up to ₹5,000 crore) and Basel III AT1/Tier-2 bonds (up to ₹2,000 crore).
- Net profit up 14.7% YoY to ₹3,462.24 crore in Q2 FY27 compared to ₹3,018.22 crore in Q2 FY26
- Gross NPA declined 99 bps YoY to 1.61%, with Net NPA improving to 0.14%
- Total income increased 20.9% YoY to ₹23,058.62 crore
- Capital Adequacy Ratio (CRAR) stood at 16.21% (CET-1 at 15.18%) as of September 30, 2026
- Board approved non-equity capital raise of up to ₹5,000 crore via Infra Bonds and up to ₹2,000 crore via AT1/Tier-2 Bonds
Indian Bank reported a 14.7% YoY increase in standalone net profit to ₹3,462.24 crore for Q2 FY27, up from ₹3,018.22 crore in Q2 FY26. Total income grew 20.9% YoY to ₹23,058.62 crore, supported by strong treasury operations and retail banking. Asset quality improved substantially with Gross NPA dropping to 1.61% (from 2.60% a year ago) and Net NPA falling to 0.14%. Additionally, the board approved raising up to ₹7,000 crore via long-term infrastructure bonds (up to ₹5,000 crore) and Basel III AT1/Tier-2 bonds (up to ₹2,000 crore).
- Net profit up 14.7% YoY to ₹3,462.24 crore in Q2 FY27 compared to ₹3,018.22 crore in Q2 FY26
- Gross NPA declined 99 bps YoY to 1.61%, with Net NPA improving to 0.14%
- Total income increased 20.9% YoY to ₹23,058.62 crore
- Capital Adequacy Ratio (CRAR) stood at 16.21% (CET-1 at 15.18%) as of September 30, 2026
- Board approved non-equity capital raise of up to ₹5,000 crore via Infra Bonds and up to ₹2,000 crore via AT1/Tier-2 Bonds
Indian Bank has revised its Repo Linked Benchmark Lending Rates (RBLR) upward by 25 bps from 7.95% to 8.20%, effective October 8, 2026. This adjustment follows the Reserve Bank of India's Monetary Policy Committee increasing the Policy Repo Rate by 25 bps from 5.25% to 5.50%. The revision applies to both new and existing loans linked to the repo rate. Other benchmark lending rates communicated on October 1, 2026, remain unchanged.
- RBI Policy Repo Rate benchmark revised up by 25 bps from 5.25% to 5.50%
- Repo Linked Benchmark Lending Rates (RBLR) increased from 7.95% to 8.20%
- Effective date of the revised lending rates is October 8, 2026
- Applies to loans linked to REPO for both new and existing borrowers
Indian Bank has submitted the quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended September 30, 2026. The certificate was issued by Cameo Corporate Services Limited, the Bank's Registrar and Share Transfer Agent (RTA). The RTA confirmed that all securities received for dematerialisation were duly processed, confirmed to depositories, and mutilated/cancelled within 15 days. This is a standard administrative filing with zero operational or financial impact.
- Filing pertains to the quarterly period ended 30th September 2026
- Confirmation provided by Registrar and Share Transfer Agent Cameo Corporate Services Limited
- Dematerialisation requests and substitution in Register of Members handled within the stipulated 15 days
- Filing submitted under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
Indian Bank has announced a revision in its Treasury Bills Linked Lending Rates (TBLR) across all tenors, effective October 3, 2026. The rate hikes range from 5 bps for short tenors (up to 3 months revised to 5.30%) up to 25 bps for tenors between 6 months and 3 years (revised to 5.95%). All other benchmark rates, including MCLR (1-year at 8.85%), Base Rate (9.55%), BPLR (13.80%), and RBLR (7.95%), remain completely unchanged. This is a periodic Asset Liability Management Committee (ALCO) adjustment aligned with money market yields.
- TBLR for <= 3 months hiked from 5.25% to 5.30% (up 5 bps)
- TBLR for >3 months & <=6 months increased from 5.55% to 5.65% (up 10 bps)
- TBLR for >6 months up to 3 years raised from 5.70% to 5.95% (up 25 bps)
- MCLR remains unchanged, including 1-year MCLR at 8.85%
- Policy Repo Rate remains at 5.25% and RBLR at 7.95%
Indian Bank released provisional business figures for the quarter ended September 30, 2026, reporting total business of ₹15.96 lakh crore, reflecting a 14.2% YoY and 4.4% QoQ growth. Gross advances expanded 16.6% YoY (5.5% QoQ) to ₹7.23 lakh crore, led by RAM (domestic) segment growth of 17.8% YoY to ₹4.43 lakh crore. Total deposits rose 12.4% YoY to ₹8.73 lakh crore, while domestic CASA ratio stood at 39.28% compared to 38.87% in the year-ago period and 39.73% in the prior quarter. Credit growth continues to outpace deposit growth, sustaining strong operational momentum.
- Total Business reached ₹15.96 lakh crore as of September 30, 2026, up 14.2% YoY and 4.4% QoQ
- Gross Advances grew 16.6% YoY to ₹7.23 lakh crore, driven by domestic RAM advances rising 17.8% YoY to ₹4.43 lakh crore
- Total Deposits expanded 12.4% YoY to ₹8.73 lakh crore, with Current Account deposits rising 27.5% YoY to ₹0.51 lakh crore
- Domestic CASA ratio stood at 39.28%, improving 41 bps YoY but declining 45 bps QoQ
Indian Bank has received notification from the Central Government extending the tenure of Executive Director Shri Shiv Bajrang Singh. His tenure, which was previously scheduled to end on October 8, 2026, has been extended until his superannuation on February 28, 2027, or until further orders. The bank confirmed he is not related to any other directors and is not debarred from holding office by SEBI or other authorities.
- Tenure extended beyond currently notified term ending on 08.10.2026
- Extension valid till superannuation date of 28.02.2027 or until further orders
- Central Government notification dated 23.09.2026 (No.eF.No.4/1/(iv)/2025-BO.I)
Indian Bank has received a strike notice from the United Forum of Bank Unions (U.F.B.U.), comprising seven trade unions including AIBEA and AIBOC. The unions have called for strikes on 11th September 2026, 28th to 30th September 2026, and a continuous strike starting from 26th October 2026 over various demands. The bank stated it has made arrangements for smooth operations, though branch and office functioning may face disruptions if the strikes materialize.
- Notice served by UFBU comprising 7 bank unions (AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC, INBEF)
- Strike scheduled for 11th September 2026
- Three-day strike planned from 28th to 30th September 2026
- Call for continuous strike beginning 26th October 2026
Indian Bank has consented to divest up to 15,00,000 equity shares in the National Stock Exchange of India Limited (NSE) through an Offer for Sale (OFS) in NSE's proposed IPO. The shares proposed for sale represent 17.91% of Indian Bank's total holding in NSE. Consent for the OFS was executed on September 9, 2026, with an indicative completion timeline of end-September 2026, subject to regulatory approvals. For FY 2025-26, the bank received Rs 29.31 crore as dividend income from NSE.
- Proposes to divest up to 15,00,000 equity shares of NSE via Offer for Sale
- Divestment constitutes 17.91% of the total shares held by the bank in NSE
- Consent letter for OFS executed on September 9, 2026
- Indicative completion target set for end of September 2026, pending approvals
- Dividend earned from NSE in FY 2025-26 stood at Rs 29,31,25,000
Indian Bank has disclosed the outcome of a one-on-one investor interaction held on September 8, 2026. The meeting was conducted virtually with representatives from Millennium. According to the regulatory filing, only information already available in the public domain was discussed, with no unpublished price-sensitive information shared.
- One-on-one investor interaction held on 08.09.2026
- Meeting conducted virtually with Millennium
- Only publicly available information was shared during the session
Financial Performance
Revenue Growth by Segment
Total Interest Income grew 8.09% YoY to ₹16,590 Cr in Q2FY26. Growth was led by the RAM (Retail, Agriculture, MSME) segment which grew 15.57% YoY to ₹3.76 lakh Cr, while Corporate credit grew at a slower pace of 5.10% YoY to ₹1.97 lakh Cr. Specifically, Retail grew 18.58% (₹1,30,499 Cr), Agriculture 13.98% (₹1,46,205 Cr), and MSME 14.10% (₹98,956 Cr).
Geographic Revenue Split
Domestic advances constitute the vast majority of operations, with RAM sector advances representing 60% of gross advances as of December 2024. Corporate and overseas advances accounted for the remaining 40%.
Profitability Margins
Net Interest Margin (NIM) stood at 3.34% for Q2FY26. Return on Assets (RoA) was 1.32% and Return on Equity (RoE) was 19.58%. Net Profit for Q2FY26 increased 11.49% YoY to ₹3,018 Cr, supported by a 5.76% YoY increase in Net Interest Income to ₹6,551 Cr.
EBITDA Margin
Operating Profit for Q2FY26 was ₹4,837 Cr, a growth of 2.31% YoY. The cost-to-income ratio was previously reported at 45.92% for FY24. Operating expenses grew 8.05% YoY to ₹4,201 Cr in Q2FY26, primarily driven by employee and technological costs.
Capital Expenditure
While traditional Capex is not the primary metric for banks, Indian Bank is heavily investing in digital transformation, with a target digital business of ₹2,25,000 Cr, of which ₹1,23,585 Cr was achieved by H1FY26.
Credit Rating & Borrowing
The bank maintains a strong credit profile supported by a 73.84% Government of India stake. Cost of Deposits stood at 5.01% in Q2FY26 (up 13 bps YoY), while the overall Cost of Funds was 5.09%. Capital adequacy (CRAR) improved to 15.92% as of December 2024.
Operational Drivers
Raw Materials
For Indian Bank, 'raw materials' are deposits. Total deposits grew 12.09% YoY to ₹7.77 lakh Cr in Q2FY26. CASA (Current Account Savings Account) deposits, which are low-cost, grew 7.23% YoY.
Import Sources
Not applicable as the bank sources deposits domestically through its extensive branch network across India.
Key Suppliers
Not applicable; the bank's 'suppliers' are its retail and corporate depositors.
Capacity Expansion
The bank operates a massive network including 5,800+ branches. Digital capacity is expanding, with MSME digital adoption increasing from 45% to 57% QoQ in Q2FY26.
Raw Material Costs
Interest expenses (cost of deposits) rose 9.67% YoY to ₹10,039 Cr in Q2FY26. This increase is due to the high-interest-rate environment, which raised the cost of deposits to 5.01%.
Manufacturing Efficiency
Yield on Advances stood at 8.40% in Q2FY26. The bank's efficiency is driven by its RAM-to-Corporate mix, where RAM (higher yield) now makes up 60% of the book.
Logistics & Distribution
Distribution is handled via 15,598 Business Correspondents (BCs) and a growing digital footprint, with digital business reaching ₹3,77,865 Cr.
Strategic Growth
Expected Growth Rate
12-13%
Growth Strategy
The bank aims to achieve growth by focusing on the RAM segment (15.57% YoY growth) and digital lending. It is targeting a digital business of ₹2.25 lakh Cr and leveraging its 15,598 BCs to penetrate rural markets for financial inclusion products like PMJDY and MUDRA.
Products & Services
Savings accounts, current accounts, fixed deposits, retail loans (mortgage, vehicle), agriculture loans (KCC, SHG), MSME credit, corporate loans, and digital banking services via the IndOASIS app.
Brand Portfolio
Indian Bank, Indbank Merchant Banking Services, Ind Bank Housing Ltd, Tamil Nadu Grama Bank, Puduvai Bharathiar Grama Bank.
New Products/Services
New digital MSME products led to a 57% adoption rate. The bank is also expanding its 'Cloud Leader' infrastructure to support high-volume digital transactions.
Market Expansion
Expansion is focused on rural and semi-urban areas through the BC network and Regional Rural Banks (RRBs) like Tamil Nadu Grama Bank, which has a business size of ₹53,963 Cr.
Market Share & Ranking
Indian Bank is one of the large Public Sector Banks (PSBs) in India. It holds a 3.87% market share in PMJJBY and 3.85% in PMSBY enrolments.
Strategic Alliances
Joint ventures and subsidiaries include Indbank Merchant Banking Services (64.84% stake) and ASREC (India) Ltd.
External Factors
Industry Trends
The industry is shifting toward 'Digital First' banking and Expected Credit Loss (ECL) based provisioning. Indian Bank is positioning itself by achieving ₹1.23 lakh Cr in digital business in H1FY26.
Competitive Landscape
Faces intense competition from private banks and other PSBs for high-quality retail assets and low-cost deposits.
Competitive Moat
The bank's moat is its low-cost deposit base (CASA) and the implicit sovereign guarantee from 73.84% GoI ownership. This ensures a steady flow of capital and trust, which is sustainable given its status as a major PSB.
Macro Economic Sensitivity
Highly sensitive to RBI monetary policy and interest rate cycles. A 100 bps change in interest rates significantly impacts the ₹10,039 Cr quarterly interest expense.
Consumer Behavior
Increasing preference for digital channels; the bank responded with a 1.3x growth in digital liability business and increased digital MSME adoption.
Geopolitical Risks
Minimal direct exposure, though global economic shifts affect the corporate export-oriented portfolio and overseas branch operations.
Regulatory & Governance
Industry Regulations
Subject to RBI's Prompt Corrective Action (PCA) framework (though not currently under it), Basel III capital norms, and new directives on project financing and ECL provisioning.
Environmental Compliance
The bank is integrating ESG frameworks into its lending and operations, though specific compliance costs were not quantified in INR.
Taxation Policy Impact
The effective tax rate is reflected in the ₹1,080 Cr provision for taxes in Q2FY26 against a Profit Before Tax of ₹4,098 Cr (~26.3%).
Legal Contingencies
The bank monitors SMA 1 and SMA 2 accounts totaling ~₹19,000 Cr as potential credit risks. It also utilizes the Insolvency and Bankruptcy Code (IBC) for recoveries in the corporate segment.
Risk Analysis
Key Uncertainties
The transition to ECL provisioning could lead to a one-time hit on capital. SMA 1 and SMA 2 accounts (₹19,000 Cr) represent a key uncertainty for future slippages.
Geographic Concentration Risk
Heavy concentration in India, particularly in the South and East (due to the Allahabad Bank merger), making it sensitive to regional economic cycles.
Third Party Dependencies
Dependency on the Business Correspondent (BC) network (15,598 BCs) for rural reach and financial inclusion targets.
Technology Obsolescence Risk
Risk of falling behind private peers in digital UX; mitigated by the 'Cloud Leader' award and 1.2 lakh digital user logins.
Credit & Counterparty Risk
Corporate GNPA is very low at 0.26%, but MSME (8.12%) and Agriculture (6.61%) represent higher counterparty risk.
