Private sector lender IndusInd Bank Ltd on Friday (October 23) reported a net profit of ₹1,242 crore for the September quarter, compared with a loss of ₹437 crore in the year-ago period, beating the CNBC-TV18 poll estimate of ₹1,066 crore.
Net interest income (NII), the difference between interest earned and interest expended, rose 3.6% year-on-year (YoY) to ₹4,569 crore from ₹4,409 crore. However, the figure was below the CNBC-TV18 poll estimate of ₹4,710 crore.
Operating profit increased 40.4% YoY to ₹2,875 crore from ₹2,047 crore, surpassing the CNBC-TV18 poll estimate of ₹2,687 crore.
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On the asset quality front, the bank’s gross non-performing assets (NPA) ratio improved to 2.73% in the September quarter from 3.25% in the previous quarter. The net NPA ratio declined to 0.83% from 0.95% quarter-on-quarter (QoQ).
The yield on assets stood at 8.35% for the quarter ended September 30, 2026, compared with 8.75% in the corresponding quarter of the previous year. The cost of funds declined to 5.11% from 5.43% a year ago.
Operating expenses for Q2 FY27 declined to ₹3,943 crore from ₹4,013 crore in the year-ago quarter. Pre-provision operating profit (PPOP) rose to ₹2,874 crore from ₹2,047 crore in Q2 FY26.
For the half year ended September 30, 2026, net interest income increased to ₹9,254 crore from ₹9,049 crore in the corresponding period of the previous year. Fee income rose to ₹4,034 crore from ₹3,808 crore.
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The bank’s total income, comprising interest income and fee income, stood at ₹27,140 crore for H1 FY27, compared with ₹27,681 crore in the corresponding period of the previous year. Operating expenses declined to ₹7,641 crore from ₹8,243 crore, while PPOP increased to ₹5,648 crore from ₹4,615 crore.
Net profit for H1 FY27 stood at ₹2,279 crore, compared with ₹167 crore in the corresponding period of the previous year.
As of September 30, 2026, IndusInd Bank’s balance sheet stood at ₹5,80,148 crore, compared with ₹5,27,490 crore as of September 30, 2025.
Deposits increased to ₹4,28,832 crore as of September 30, 2026, from ₹3,89,600 crore a year earlier. Current account and savings account (CASA) deposits stood at ₹1,19,766 crore, comprising current account deposits of ₹36,742 crore and savings account deposits of ₹83,024 crore. CASA deposits accounted for 27.93% of total deposits.
Retail deposits, as defined under the liquidity coverage ratio (LCR), stood at ₹2,01,780 crore as of September 30, 2026, compared with ₹1,80,475 crore a year earlier. Advances increased to ₹3,63,104 crore from ₹3,25,881 crore over the same period.
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The bank’s asset quality improved during the September quarter. Gross non-performing assets (NPAs) declined to 2.73% of gross advances as of September 30, 2026, from 3.25% as of June 30, 2026. Net NPAs fell to 0.83% of net advances from 0.95% over the same period.
The provision coverage ratio stood at 70.19% as of September 30, 2026. Provisions and contingencies, excluding tax, for Q2 FY27 amounted to ₹1,223 crore, compared with ₹2,631 crore in the corresponding quarter of the previous year.
IndusInd Bank’s total capital adequacy ratio under Basel III guidelines stood at 16.59% as of September 30, 2026, compared with 17.10% a year earlier. Tier 1 capital adequacy ratio stood at 15.55%, against 15.88% as of September 30, 2025. Risk-weighted assets increased to ₹4,25,746 crore from ₹3,98,256 crore over the same period.
As of September 30, 2026, the bank’s distribution network comprised 3,139 branches and banking outlets and 2,773 on-site and off-site ATMs. A year earlier, it had 3,116 branches and banking outlets and 3,054 ATMs. The bank’s client base stood at approximately 42 million as of September 2026.
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Rajiv Anand, the MD and CEO of IndusInd Bank, said, “Despite a challenging global environment, India’s macroeconomic fundamentals remained resilient, supported by prudent policy decisions, creating a constructive backdrop for the banking sector. Against this backdrop, Q2 reflects the growing strength of the IndusInd Bank franchise and the progress we have made in rebuilding momentum across the business.
Our Q2 results demonstrate that the growth has strengthened, profitability has improved, asset quality trends remain encouraging, and our funding profile is becoming more granular and resilient. It is also encouraging to see increasing traction across our retail businesses, alongside continued improvement in our liability franchise.”
Shares of IndusInd Bank Ltd ended at ₹835.00, down by ₹15.00, or 1.76%, on the BSE.