Shares of Indian Bank Ltd. fell more than 3% on Thursday, October 15, after the bank reported a 14.7% year-on-year increase in standalone net profit to ₹3,462 crore for the September quarter, up from ₹3,018 crore in the year-ago period.
Net interest income (NII) for Q2FY27 rose 17.8% from last year to ₹7,719 crore from ₹6,551 crore in the corresponding quarter last year.
The bank’s other income increased to ₹3,953 crore in Q2FY27 from ₹2,487 in Q2FY26. The figure included ₹1,386.67 crore in income from the listing of National Stock Exchange (NSE) shares, comprising a realised gain of ₹252.50 crore from the offer for sale (OFS) and a revaluation gain of ₹1,134.17 crore.
Operating profit rose to ₹7,090 crore in the September quarter from ₹4,837 crore in the year-ago period.
Indian Bank’s total business grew 14.2% year-on-year and 4.4% sequentially to ₹15.96 lakh crore in Q2 FY27. Advances rose 16.6% year-on-year and 5.5% quarter-on-quarter to ₹7.23 lakh crore, while deposits increased 12.4% year-on-year and 3.4% sequentially to ₹8.73 lakh crore.
The current account and savings account (CASA) ratio stood at 39.28%, compared with 39.73% in the previous quarter and 38.87% a year earlier.
Asset quality improves; provisions rise sequentially
The bank’s asset quality improved during the quarter. Gross non-performing assets (NPAs) declined to 1.61% as of September 30, 2026, from 1.86% in the previous quarter and 2.60% a year ago.
Net NPAs eased to 0.14% from 0.15% in the previous quarter and 0.16% in the year-ago period.
However, provisions and contingencies, excluding tax, increased to ₹2,222 crore in Q2 FY27 from ₹1,196 crore in the preceding quarter and ₹739 crore a year ago. Provisions for non-performing assets stood at ₹370 crore during the quarter.
Bank approves fundraising plan
Separately, Indian Bank’s board approved a fundraising plan of up to ₹7,000 crore through non-equity instruments. This includes long-term infrastructure bonds worth up to ₹5,000 crore to finance or refinance infrastructure and affordable housing, and up to ₹2,000 crore through Basel III-compliant Additional Tier 1 (AT1) and Tier 2 bonds.
The fundraising will be undertaken in one or more tranches during the current or subsequent financial years, depending on the bank’s requirements.
Shares of Indian Bank are trading 2.2% lower after the results announcement at ₹831.2. The move is in line with the fall seen in the PSU Bank sector across the board. The stock has turned positive on a year-to-date basis.
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