Indian Bank Q4 Results 2025: Bank Drops Highest-Ever 162.5% Dividend Since Listing - Check Record Date

Indian Bank Q4 Results: State-owned Indian Bank has announced robust financial results for the fourth quarter ending March 31, 2025, along with its highest-ever dividend payout. The bank reported a net profit of Rs 2,956 crore for Q4 FY25, marking a 32% increase compared to Rs 2,247 crore in the same quarter last year.

Operating profit rose 17% year-on-year to Rs 5,019 crore, and net interest income increased by 6% to Rs 6,389 crore.

Indian Bank Dividend 2025

Indian Bank has recommended a dividend of Rs 16.25 per equity share, which amounts to 162.50% of the paid-up equity capital for FY2024- 25. This is the highest dividend declared by the bank since its listing.

Indian Bank Dividend 2025 Record Date

The record date for the dividend is June 10, 2025, and its payment is subject to shareholder approval at the upcoming 19th Annual General Meeting, scheduled for June 17, 2025, via video conferencing.

Indian Bank Dividend History

This dividend will be highest from what the bank has paid to its shareholders in the past. Bank's last highest final dividend was Rs 12 per share which was declared in June 2024, up from Rs 8.6 in 2023 and Rs 6.5 in 2022.

The bank paid Rs 2 in 2021, and there was a gap in 2020, likely due to the impact of the pandemic. Before that, it declared Rs 6 each in 2018 and 2017.

In earlier years, dividends varied with amounts like Rs 4.2 in 2015, Rs 1.7 in 2014, and Rs 6.6 in 2013.

Indian Bank has also declared interim dividends occasionally, such as Rs 3 in January 2014 and Rs 2.5 in March 2010. 

Indian Bank Q4 Earnings Highlights

The bank’s performance indicators showed notable improvement. Return on Assets (RoA) rose by 22 basis points (bps) to 1.37%, while Return on Equity (RoE) jumped by 195 bps to 21.01%.

The yield on investments increased by 35 bps to 7.23%, and the cost-to-income ratio improved to 45.05% from 47.99%. The yield on advances stood at 8.64% for the period.

Also Read: Kotak Mahindra Bank Q4 Results 2025: NII Jumps 10.66%

Loan growth was strong, with gross advances rising 10% year-on-year to Rs 5.88 lakh crore. Retail, agriculture, and MSME (RAM) segments grew by 13% to Rs 3.51 lakh crore, contributing 64.23% to gross domestic advances.

Within RAM, retail, agri, and MSME loans grew by 14%, 14%, and 12%, respectively. Home loans (including mortgages) increased by 12%.

Priority sector advances stood at Rs 2.04 lakh crore, or 44% of Adjusted Net Bank Credit (ANBC), exceeding the 40% regulatory requirement.

Also Read: SBI Q4 Results 2025: PAT Declines 9.9%, Dividend Of Rs 15.90 Declared

Total deposits increased by 7% to Rs 7.37 lakh crore, and the domestic CASA ratio stood at 40.17%. The Credit-Deposit (CD) ratio was at 79.79%.

Asset quality also improved significantly. Gross Non-Performing Assets (GNPA) dropped to 3.09% from 3.95% a year ago, and Net NPA (NNPA) fell to 0.19% from 0.43%.

The Provision Coverage Ratio (PCR), including technical write-offs, rose to 98.10%. The slippage ratio slightly improved to 1.09%.

Capital adequacy remained strong, with the Capital Adequacy Ratio at 17.94%. Common Equity Tier-I (CET-I) improved to 15.36%, and Tier-I capital rose to 15.85%. Earnings Per Share (EPS) also surged by 32% to Rs 87.78 from Rs 66.73 in FY24.

Indian Bank Fundraise

Looking ahead, Indian Bank has announced plans to raise equity capital up to Rs 5,000 crore through various modes like QIP, FPO, or Rights Issue.

Additionally, it plans to raise to Rs 2,000 crore via Basel III-compliant AT-1 perpetual bonds or Tier-2 bonds. Although the bank had similar approvals in FY24, it did not utilise them during the previous financial year.