Company Overview

Indbank Merchant Banking Services Limited (CIN: L65191TN1989PLC017883), a subsidiary of Indian Bank (holding 64.84% stake), is engaged in Stock Broking, Depository Participant operations, Distribution of Mutual Funds & other investment products, and Merchant Banking activities.

Financial Performance FY 2025-26

Income Statement Highlights

  • Gross Income: ₹2515.29 lakhs (Previous year: ₹2680.88 lakhs) - decrease of 6.18%
  • Revenue from Operations: ₹2511.27 lakhs (Previous year: ₹2677.55 lakhs)
  • Interest Income: ₹684.30 lakhs (Previous year: ₹626.51 lakhs)
  • Dividend Income: ₹1.38 lakhs (Previous year: ₹1.49 lakhs)
  • Rental Income: ₹16.73 lakhs (Previous year: ₹21.00 lakhs)
  • Fees and Commission Income: ₹1818.89 lakhs (Previous year: ₹2010.62 lakhs)
  • Net gain on fair value changes: (₹10.03) lakhs (Previous year: ₹17.93 lakhs)
  • Other Income: ₹4.02 lakhs (Previous year: ₹3.33 lakhs)
  • Total Expenses: ₹1549.91 lakhs (Previous year: ₹1530.95 lakhs)
  • Finance Costs: ₹18.73 lakhs (Previous year: ₹12.18 lakhs)
  • Fees and commission expense: ₹132.54 lakhs (Previous year: ₹157.49 lakhs)
  • Employee Benefits Expenses: ₹928.45 lakhs (Previous year: ₹897.50 lakhs)
  • Depreciation, amortization and impairment: ₹23.96 lakhs (Previous year: ₹43.79 lakhs)
  • Others expenses: ₹440.60 lakhs (Previous year: ₹394.86 lakhs)
  • Profit before tax: ₹965.38 lakhs (Previous year: ₹1149.93 lakhs)
  • Tax Expense: ₹263.65 lakhs (Current tax: ₹256.97 lakhs, Deferred tax: ₹6.68 lakhs)
  • Net Profit for the period: ₹712.48 lakhs (Previous year: ₹846.33 lakhs)
  • Other Comprehensive Income: (₹3.56) lakhs (Previous year: (₹18.05) lakhs)
  • Total Comprehensive Income: ₹708.92 lakhs (Previous year: ₹828.28 lakhs) - decrease of 14.4%
  • Earnings per share (Basic and Diluted): ₹1.61 (Previous year: ₹1.91)

Operational Highlights

  • Stock Broking Turnover: ₹15771.07 crores (Previous year: ₹15709.18 crores)
  • DP Accounts: 93,633 accounts under DP operations
  • Broking Accounts: 53,883 accounts under broking operations
  • Mutual Fund AUM: Increased to ₹63 crore from ₹47 crore YoY
  • Distribution Income: Increased by 121.56% to ₹56.21 lakhs from ₹25.37 lakhs
  • Merchant Banking Income: Increased by 156.23% to ₹14.40 lakhs from ₹5.62 lakhs

Balance Sheet Position (as at March 31, 2026)

  • Paid-up Equity Share Capital: ₹4437.82 lakhs (44,378,200 equity shares of ₹10 each)
  • Reserves & Surplus: ₹5436.27 lakhs
  • Total Assets: ₹12313.93 lakhs
  • Current Assets: ₹10420.63 lakhs
  • Current Liabilities: ₹2439.84 lakhs
  • Cash and Cash Equivalents: ₹141.06 lakhs
  • Bank Balances (other than cash): ₹8530.54 lakhs
  • Investments: ₹301.96 lakhs (Previous year: ₹182.86 lakhs)

Dividend Declaration

The Board does not recommend any dividend for the financial year 2025-26 to plough back reserves to improve net worth.

Corporate Governance & Board Matters

Board Composition

The Board comprises 7 Directors:

  • Shri V. Haribabu - President & Whole Time Director
  • Shri Sunil Jain - Nominee Director (Indian Bank)
  • Shri Ashutosh Choudhury - Nominee Director (Indian Bank)
  • Shri Vaijinath Gavarshetty - Independent Director
  • Shri Devinder Kumar Singla - Independent Director
  • Shri V.A. Prasanth - Independent Director
  • Smt. Padma R - Independent Director

Board Meetings

7 Board meetings held during FY 2025-26 on: 24.04.2025, 18.07.2025, 02.09.2025, 13.10.2025, 05.12.2025, 14.01.2026, and 18.03.2026

Key Management Changes

  • Shri Tausif Inamdar, CFO, repatriated to Indian Bank effective July 18, 2025
  • Shri M.S. Balaji appointed as CFO effective July 19, 2025

Director Retirement

Shri Sunil Jain, Nominee Director, retires by rotation and offers himself for re-appointment at the AGM.

37th Annual General Meeting Details

  • Date: September 24, 2026
  • Time: 11:30 AM IST
  • Mode: Video Conferencing/Other Audio Visual Means
  • Book Closure: September 18, 2026 to September 24, 2026
  • E-voting Period: September 21, 2026 (9 AM) to September 23, 2026 (5 PM)
  • Record Date: September 17, 2026

Agenda Items

1. Adoption of audited financial statements for FY ended March 31, 2026

2. Re-appointment of Shri Sunil Jain as Director retiring by rotation

Regulatory Compliance & Disclosures

SEBI Compliance

The document is submitted pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Auditors

  • Statutory Auditors: M/s. Anand & Ponnappan, Chartered Accountants, Chennai
  • Secretarial Auditors: M/s. Shanmugam Rajendran & Associates LLP, Practising Company Secretaries
  • Both auditors issued unmodified reports without any qualifications

Corporate Social Responsibility (CSR)

  • CSR Obligation: ₹18.57 lakhs (2% of average net profit)
  • CSR Spent: ₹18.57 lakhs
  • ₹13.07 lakhs to Hindu Mission Health Services for solar power plant
  • ₹5.50 lakhs to Prime Minister's National Relief Fund
  • Capital assets created through CSR: Solar Power Plant at Hindu Mission Health Services, Chennai

Litigations and Contingent Liabilities

  • Income Tax Disputes: ₹1842.78 lakhs for AY 2007-08 to 2009-10 (treatment of capital gains as business income)
  • Sales Tax Disputes: ₹26.04 lakhs
  • GST Disputes: ₹34.75 lakhs for FY 2018-19 to 2021-22

Related Party Transactions

Transactions with Indian Bank (holding entity):

  • Interest paid on borrowings: ₹18.73 lakhs
  • Rent paid: ₹25.26 lakhs
  • Interest received on deposits: ₹272.14 lakhs
  • Commission paid for acting as Channel Partner: ₹3.26 lakhs

Operational Network

The company has terminal networks across 16 states in India with presence in major cities including Chennai, Mumbai, Kolkata, Delhi, Hyderabad, Bangalore, and others.

Outlook

The company will focus on increasing fee-based business activities, recovery of overdues, reduction of NPAs, and disinvestment of quoted and unquoted investments.