32% Q4 Profit Spike! PSU Bank Declares Rs 16.25 Dividend – Don’t Miss This Payment Date; Trade Strategy Inside

Founded in 1907, Indian Bank is a public sector bank with its main office located in Chennai. In FY25, Indian Bank surpassed Rs 13.25 Lakh Cr in global business. With 5901 domestic branches as of March 31, 2025, the bank has 14667 Business Correspondents (BCs), 5268 ATMs and BNAs, and 1992 rural, 1555 semi-urban, 1182 urban, and 1172 metro branches. The bank announced a dividend of Rs. 16.25 for FY25, the highest payout since its founding. Here is an explanation of Indian Bank's record date and trading setup.

Indian Bank Dividend

The Board of Directors of Indian Bank recommended a dividend of Rs 16.25 per equity share i.e @ 162.50 % of paid-up equity capital of the bank for the financial year 2024-25.

"The 19th Annual General Meeting of shareholders of the Bank will be held on Tuesday, the 17th June, 2025 through Video Conferencing (VC) / Other Audio Visual Means (OAVM). The Record Date for payment of dividend will be Tuesday, the 10th June 2025 (closure of Business Hours). The payment of dividend is subject to the approval of Shareholders at the ensuing Annual General Meeting of the Bank. Book Closure from Wednesday, the 11th June 2025 to Tuesday, the 17th June 2025 (both days inclusive) in connection with the ensuing Annual General Meeting and Dividend payment," Indian Bank said in a regulatory filing.

Indian Bank Fundraising Proposal

According to the need, the Board of Directors has approved raising the bank's equity capital up to Rs. 5000 crore through a variety of methods, including QIP, FPO, rights issue, or a combination of these. Additionally, the Board has approved raising AT-1/Tier-2 Capital up to Rs. 2000 crore through the issuance of Basel III Compliant AT-1 Perpetual Bonds or Tier 2 Bonds in one or more tranches during the current or future fiscal years.

Indian Bank Q4 Results

Indian Bank's net profit for the quarter ending March 31, 2025 (Q4FY25) was Rs 2,956 crore, up 32% from Rs 2,247 crore in the year-ago quarter. Net interest income (NII) increased 6.2% to Rs 6,389 crore from Rs 6015 Cr. From Rs 4305 Cr in the same quarter of the previous fiscal year to Rs 5019 Cr in the current quarter, the bank's operating profit increased by 17% YoY. In the quarter that ended in March 2025, the bank's Return on Equity (RoE) improved by 195 basis points to 21.01%, while its Return on Assets (RoA) increased by 22 basis points to 1.37%.

According to Indian Bank, its total deposits climbed 7% YoY to Rs 737154 Cr in March 2025 from Rs 688000 Cr in March 2024. On the other hand, as of March 31, 2025, the bank's domestic CASA ratio was 40.17%. The bank said that its NNPA dropped 24 basis points to 0.19% in March 2025 from 0.43% in March 2024, and its GNPA% dropped 86 basis points YoY to 3.09% in Q4FY25 from 3.95% in Q4FY24.

The bank's net profit rose by 35% YoY to Rs 10918 Cr in FY25 from Rs 8063 Cr in FY24, whereas Net Interest Income grew by 8% YoY to Rs 25176 Cr in FY25 from Rs 23274 Cr in FY24.

Indian Bank Share Price Target

"Indian Bank has been showing consistent strength, holding firmly above key support levels. The CMP of ₹561 keeps it within an ascending channel, supported by healthy RSI and MACD readings. The price structure shows higher highs and higher lows, confirming a bullish bias. Immediate support is placed at ₹540, with upside potential toward ₹590-₹600. Volume patterns also confirm accumulation at lower levels. The trend remains strong, and traders should look for buying opportunities on minor dips. The stock continues to offer a positive outlook with favorable risk-reward for short- to medium-term investors," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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