FINANCIAL SERVICES · NSE/BSE: INDIANB

Indian Bank Earnings Summary — Q2 FY2027

Sentiment: Positive

AI-generated summary

Generated 2026-10-16

Generated using: Official Earnings Press Release Earnings Call Transcript

Business Intelligence Report

Indian Bank reports 14.7% YoY standalone net profit growth to ₹3,462 crore in Q2 FY27 with GNPA dropping to 1.61%

Quarterly Business Intelligence

Q2 FY2027

Financials from Financial Intelligence · data as of 2026-09-30

Revenue

₹19,149 Cr

QoQ +5.8%YoY +15.2%

Net Profit

₹3,541 Cr

QoQ +5.5%YoY +13.9%

Operating Profit

₹12,050 Cr

QoQ -0.8%YoY +4.6%

Operating Margin

62.9%

QoQ -421 bpsYoY -635 bps

AI Quarterly Scorecard™

/ 100

Healthy

Revenue Momentum83

Profit Growth79

Margin Expansion44

Growth Consistency97

Operating Efficiency27

Financial Stability72

Computed deterministically from the last 10 reported quarters.

Quarterly Business Momentum

Revenue & Growth

Revenue has increased for 10 consecutive quarters.
Revenue of ₹19,149 Cr is 15.2% higher year-on-year.
Revenue has compounded at 11.3% annualised over the last 10 quarters.
Revenue is at its highest level in 10 quarters.

Profitability

Net profit has reached its highest level in 10 quarters.
Net profit of ₹3,541 Cr is 13.9% above the same quarter last year.
Profit growth is trailing revenue growth this quarter.
Net profit has compounded at 15.3% annualised across the period.

Margins

Operating margin stands at 62.9% in Q2 FY2027.
Operating margin compressed by 635 bps year-on-year.
Over the last two years operating margin has contracted by 360 bps.
PBT margin is 25.3%.

Operating Efficiency

Expenses grew 39.0% against revenue growth of 15.2%.
Operating profit of ₹12,050 Cr is 4.6% higher year-on-year.
Operating leverage has been under pressure recently.

Overall Momentum

6 of the last 6 measured quarters delivered year-on-year revenue growth.
Overall quarterly business momentum scores 67/100 (Healthy) on the latest 10 quarters.
Business momentum remains positive heading into the next quarter.

Quarterly Financials

Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %

Metric	Trend	Latest Q2 FY2027	Q1 FY2027	Q4 FY2026	Q3 FY2026	Q2 FY2026	Q1 FY2026	Q4 FY2025	Q3 FY2025	Q2 FY2025	Q1 FY2025
Revenue	Stable	19,149	18,095	17,489	17,102	16,628	16,285	15,860	15,770	15,369	15,041
Expenses	Improving	7,099	5,946	5,811	5,493	5,108	4,880	5,097	5,102	5,144	4,994
Operating Profit	Stable	12,050	12,149	11,677	11,610	11,520	11,405	10,762	10,668	10,225	10,046
Operating Margin	Stable	62.9%	67.1%	66.8%	67.9%	69.3%	70.0%	67.9%	67.7%	66.5%	66.8%
Other Income	Improving	4,187	2,902	2,773	2,793	2,643	1,854	2,935	2,397	2,602	2,077
Interest	Stable	11,389	10,657	10,372	10,203	10,040	9,924	9,467	9,345	9,154	8,861
Depreciation	Insufficient data	—	—	—	—	—	—	—	—	—	—
Profit Before Tax	Improving	4,848	4,394	4,078	4,199	4,123	3,335	4,230	3,721	3,674	3,263
Tax	Improving	1,402	1,095	963	1,113	1,082	1,116	1,268	845	934	846
Net Profit	Improving	3,541	3,357	3,173	3,147	3,108	2,276	2,982	2,910	2,800	2,570
Net Margin	Stable	18.5%	18.6%	18.1%	18.4%	18.7%	14.0%	18.8%	18.4%	18.2%	17.1%

Source: Financial Intelligence (Structured Quarterly Data)•Latest Quarter: Q2 FY2027•Figures in ₹ Crore • Margins in %•Automatically updated from Financial Intelligence · 2026-09-30

Key Takeaways

Standalone net profit grew 14.71% YoY to ₹3,462.24 crore, while consolidated net profit stood at ₹3,540.71 crore.
Gross NPA ratio improved significantly to 1.61% from 2.60% a year ago and 1.86% in the prior quarter; Net NPA stood at a low 0.14%.
Operating profit surged 46.59% YoY to ₹7,090.04 crore, expanding operating profit margin to 30.75% from 25.35% in Q2 FY26.
Total income rose 20.87% YoY to ₹23,058.62 crore, supported by a 15.17% rise in interest earned and ₹3,952.79 crore in other income (which included ₹1,386.67 crore on listing of NSE shares).
Provisions (other than tax) and contingencies increased to ₹2,222.40 crore from ₹738.60 crore YoY, though provisions for NPAs declined to ₹370.20 crore.
The Board approved raising up to ₹5,000 crore via Long Term Infrastructure Bonds and up to ₹2,000 crore via Basel III AT-1/Tier-2 bonds.
Capital adequacy remained strong with Basel III CRAR at 16.21% and CET-1 ratio at 15.18%.

Management Guidance

Management targets FY27 deposit growth between 9%–11% and advances growth between 11%–13%, with CASA maintained at approximately 40%. Full-year NIM is guided at 3.10%–3.25% due to elevated deposit costs, while RoA is targeted at 1.20%–1.30%. Asset quality guidance includes keeping Gross NPA between 1.50%–1.60%, Net NPA under 0.25%, slippage ratio below 1%, and credit cost below 1%.

Sentiment Shift

Improving

Asset quality continues its multi-quarter improvement trajectory with Gross NPA reaching 1.61%, supported by healthy loan growth, expanding operating margins, and prudent provisioning buffers.

Confident

Prudent

Disciplined

Outlook

Indian Bank maintains a stable credit growth outlook driven by the RAM (Retail, Agriculture, MSME) segment and selective corporate lending. With strong capital adequacy and benign NPA slippages, the bank is well-positioned to absorb regulatory shifts and maintain Return on Assets above 1.20%.

From the Annual Report (Key Quotes)

“Total business has grown by 12.79%, and total deposit has grown by 12.29%. Advance has grown by 13.43%. CASA, which has been the challenge, CASA still, we have grown by 10.85%.”

“We remain very cautious in raising bulk deposits... We are giving deposit guidance between 9% to 11%. Advances growth of between 11% to 13%. CASA, approximately, we will maintain around 40%.”

“I believe in the resilience of the banking system and resilience of our economy... because of that, I am not seeing much impact on the asset quality also.”