Indian Bank Reports 14.71% Rise in Q2 Net Profit to ₹3,462 Crore
Indian Bank has reported a 14.71% year-on-year increase in net profit to ₹3,462 crore for the quarter ended September 30, 2026, compared with ₹3,018 crore in the corresponding quarter last year.
The bank’s operating profit rose 46.58% to ₹7,090 crore from ₹4,837 crore, while net interest income (NII) increased 17.83% to ₹7,719 crore from ₹6,551 crore.
Total business grew 14.22% year-on-year. Gross advances increased 16.39% to ₹7.22 lakh crore, while total deposits rose 12.50% to ₹8.74 lakh crore.
Advances under the Retail, Agriculture and MSME (RAM) segments grew 17.74% to ₹4.42 lakh crore. Retail advances increased 17.37%, agricultural advances 17.18% and MSME advances 19.06%. Home loans, including mortgage loans, recorded 12.33% growth.
Deposits were supported by a domestic CASA ratio of 39.36%. The bank also reduced bulk deposits, including certificates of deposit, by 5.60% quarter-on-quarter to ₹1.52 lakh crore in September from ₹1.62 lakh crore in June 2026.
Asset Quality Improves
The bank reported an improvement in asset quality, with gross non-performing assets (GNPA) declining to 1.61% in September 2026 from 2.60% a year earlier. Net non-performing assets (NNPA) fell to 0.14% from 0.16%.
The provision coverage ratio, including technical write-offs, stood at 98.22%, while the slippage ratio improved to 0.69% from 0.79% a year earlier.
The bank’s cost-to-income ratio declined to 39.25% in September from 44.80% in June 2026. Net interest margin (NIM) for domestic operations stood at 3.42%.
Half-Year Profit Rises 12.42%
For the first half of FY2026-27, Indian Bank reported a 12.42% year-on-year increase in net profit to ₹6,735 crore, compared with ₹5,991 crore in the corresponding period last year.
Operating profit rose 31.65% to ₹12,647 crore, while net interest income increased 17.38% to ₹15,154 crore. Domestic NIM stood at 3.41%, compared with 3.35% in the first half of the previous financial year.
Return on assets stood at 1.31%, while return on equity was 19.57% for the half-year period.
Digital transactions accounted for 96% of the bank’s total transactions during the reported period. The bank’s capital adequacy ratio stood at 16.21% as of September 30, 2026.
