Mumbai: Indian Bank has reported a 14.7% year-on-year increase in net profit to ₹3,462.24 crore for the second quarter of the financial year 2026-27 (Q2 FY27), compared with ₹3,018.22 crore in the corresponding quarter of the previous financial year. The bank also recorded growth in its operating profit and improved asset quality during the quarter ended September 30, 2026.
For the first half of FY27, Indian Bank’s net profit increased by 12.4% to ₹6,735.33 crore from ₹5,991.04 crore in the corresponding period of the previous year.
The bank announced its financial performance on October 15, 2026, after its Board of Directors approved the unaudited, reviewed standalone and consolidated financial results at a meeting held on the same day.
Indian Bank Q2 FY27 Financial Results
Indian Bank recorded growth across key financial indicators during the July–September quarter of FY27.
The key financial highlights for Q2 FY27 are:
- Net Profit: ₹3,462.24 crore, up 14.7% from ₹3,018.22 crore in Q2 FY26.
- Operating Profit: ₹7,090.04 crore, compared with ₹4,836.51 crore in the corresponding quarter of the previous financial year.
- Total Income: ₹23,058.62 crore.
The increase in net profit reflects the bank’s stronger quarterly earnings, while the rise in operating profit highlights improved performance at the operating level.
Indian Bank H1 FY27 Net Profit Rises 12.4%
Indian Bank also reported healthy financial performance for the first six months of FY27, covering the period from April to September 2026.
The bank’s H1 FY27 financial highlights include:
- Net Profit: ₹6,735.33 crore, up 12.4% from ₹5,991.04 crore in H1 FY26.
- Operating Profit: ₹12,647.33 crore, compared with ₹9,606.79 crore in the corresponding period of the previous year.
The growth in half-yearly profit indicates continued earnings momentum during the first half of the current financial year.
Gross NPA Falls to 1.61%, Net NPA Improves to 0.14%
Indian Bank reported an improvement in asset quality, with both gross and net non-performing asset (NPA) ratios declining year-on-year as of September 30, 2026.
The bank’s Gross NPA ratio declined to 1.61%, compared with 2.60% at the end of September 2025. The gross NPA amount stood at ₹11,612.52 crore.
Similarly, the Net NPA ratio improved to 0.14%, down from 0.16% a year earlier. The net NPA amount stood at ₹982.90 crore.
The bank’s provision coverage ratio (PCR) stood at 98.2% as of September 30, 2026, indicating a high level of provisions against its non-performing assets.
Provisioning against bad loans declined to ₹370 crore during Q2 FY27, compared with ₹382 crore in the July–September quarter of the previous financial year.
Indian Bank Capital Adequacy Ratio at 16.21%
Indian Bank reported a Capital to Risk-Weighted Assets Ratio (CRAR), under Basel III norms, of 16.21% as of September 30, 2026. However, this was lower than the 17.31% recorded at the end of Q2 FY26.
The bank’s Common Equity Tier-1 (CET1) ratio stood at 15.18%.
Capital adequacy ratios are important indicators of a bank’s ability to absorb potential losses and maintain financial stability.
Board Approves Fundraising Plans Worth ₹7,000 Crore
Along with approving the quarterly and half-yearly financial results, Indian Bank’s Board of Directors approved fundraising plans through debt instruments, excluding equity capital.
The approved plans include:
- Long-Term Infrastructure Bonds: Up to ₹5,000 crore.
- Basel III-Compliant AT-1 and Tier-2 Bonds: Up to ₹2,000 crore.
The proposed fundraising could provide the bank with additional resources for infrastructure-related financing and strengthen its capital and funding position, subject to the applicable requirements and execution of the approved plans.
Indian Bank Q2 FY27 Results: Key Takeaways
Indian Bank’s Q2 FY27 performance was marked by higher net profit, a substantial increase in operating profit and an improvement in asset quality. Net profit for the quarter rose 14.7% year-on-year, while first-half profit increased 12.4%.
The decline in gross and net NPA ratios indicates an improvement in the bank’s reported asset quality. At the same time, the CRAR moderated compared with the year-ago quarter, and the board approved plans to raise up to ₹7,000 crore through infrastructure and Basel III-compliant bonds.
About Indian Bank
Indian Bank is a public sector bank headquartered in Chennai, Tamil Nadu. Established in 1907, it provides a wide range of banking and financial services, including retail banking, corporate banking, loans, deposits and digital banking solutions. The bank operates across India and serves individual customers, businesses and institutional clients.
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