Results reported 15 October 2026 | Public sector bank | Standalone unless noted
The Quick Take
Indian Bank’s Q2 FY27 net profit rose 14.7% to Rs 3,462 cr, with asset quality improving. Management raised its FY27 deposit and advance growth guidance. Part of the operating profit came from one-off items, including NSE-related gains and income-tax refund interest.
Q2 FY27 snapshot (Rs crore)
| Metric | Q2 FY27 | Comparison |
|---|---|---|
| Net profit | 3,462 | +14.71% YoY; Q1: 3,273 |
| Net interest income | 7,719 | +17.83% YoY |
| Operating profit | 7,090 | +46.58% YoY |
| Non-interest income | 3,953 | +59% YoY |
| Domestic NIM | 3.42% | Q1: 3.41% |
| GNPA / NNPA | 1.61% / 0.14% | Q2 FY26 GNPA: 2.60% |
| ROA / ROE | 1.31% / 19.66% | Q1: 1.31% / 19.48% |
| Cost-to-income | 39.25% |
Growth and deposits
- Gross advances Rs 7.22 lakh cr (+16.4%); deposits Rs 8.74 lakh cr (+12.5%).
- CASA ratio 39.36%; CRAR 16.21%.
- SMA book 4.19%, down from 7.35% a year earlier.
Guidance (from the call, verify against the filing)
FY27 deposit growth raised to 11 to 12% (from 9 to 11%); advances raised to 13 to 14% (from 11 to 13%). Expected Q3 NIM gain of 5 to 6 bps, GNPA of 1.50 to 1.60%, and credit cost below 1%. The transcript contains some internal inconsistencies.
Risks
- ECL transition provisioning, with Rs 3,500 cr total impact.
- Muted treasury income.
- One-off gains in the Q2 base.
- Rate-cycle effect on NIM.
Setup
Neutral. Earnings and asset quality are improving, and guidance has been raised. Watch the ECL transition costs.
This is educational analysis, not personalized investment advice. Do your own research before investing.
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