Indian Bank gets board's approval to raise ₹5,000 crore: MD Kumar

Indian Bank plans to raise ₹5,000 crore in FY26, with a focus on enhancing capital adequacy and introducing its own UPI app, IND-UPI. Net profit rose by 23.69% in Q1 FY26

Chennai-based Indian Bank has received the board’s nod to raise ₹5,000 crore during the current financial year, said the bank's Managing Director and CEO, Binod Kumar.

 

"We have to raise ₹5,000 crore. But, I do not think it (fund raise) will be required (immediately)," he told PTI in an interaction.

 

The bank's top official also told PTI that the capital adequacy ratio for the first quarter (Q1) of financial year (FY) 2025-26 was 17.80 per cent. The bank had reported a 16.47 per cent capital adequacy ratio in Q1 of the previous financial year.

 

He also stated that the funds would not be raised through Qualified Institutional Placement (QIP), which is a process through which listed companies raise capital by issuing shares or securities to qualified institutional buyers (QIBs).

 

 

Gross non-performing assets (NPA) declined by 8 basis points quarter-on-quarter (QoQ) to 3.01 per cent in the June quarter of FY26 from 3.09 per cent in March 2025, while Net NPA improved by 1 basis point to 0.18 per cent quarter-on-quarter, from 0.19 per cent in the previous quarter, the company had announced in an exchange filing. 

 

UPI Focus

 

The bank is also developing a standalone UPI application named 'IND-UPI'. The app will have features similar to those provided by major UPI mobile applications.

 

"Right now, our customers are using other UPI apps, and we (Indian Bank) have to pay them a fee. Monthly, it will be around ₹12 crore. With the IND-UPI payment facility, customers will be able to make payments using our own application," he said.

 

The bank aims to save around ₹150 crore annually through the IND-UPI application project.

 

The app is in the development phase and is being used by a 'Closed User Group' and plans to roll it out to customers after receiving NPCI’s approval.

 

Hiring

 

The CEO also stated that the company has approved the hiring of around 3,000 employees during FY26 across domains like cyber security, risk specialists, and multiple specialised roles.

 

Q1 Results

 

Net profit rose by 23.69 per cent year-on-year (YoY) to ₹2,973 crore in Q1 FY26, compared to ₹2,403 crore in the June quarter of FY25. While the net interest income registered a 2.93 per cent YoY growth, reaching ₹6,359 crore from ₹6,178 crore during the same quarter of the previous financial year.