Pune: Indian Bank Q2 FY27 results for the quarter ended September 30, 2026, showed broad-based growth across business, advances, deposits and profitability, along with further improvement in asset quality.
Indian Bank Q2 FY27 net profit increased 14.71% year-on-year (YoY) to ₹3,462 crore, compared with ₹3,018 crore in September 2025.
The bank’s total business grew 14.22% YoY, while gross advances increased 16.39% YoY to ₹7,21,982 crore from ₹6,20,324 crore.
The Indian Bank Q2 FY27 performance was supported by strong traction across the Retail, Agriculture and MSME (RAM) portfolios.
Indian Bank Q2 FY27: Total Business Grows 14.22%
During Indian Bank Q2 FY27, total business increased 14.22%, reflecting broad-based momentum across all segments.
- Gross advances grew 16.39% YoY to ₹7,21,982 crore in September 2026 from ₹6,20,324 crore in September 2025.
- RAM advances increased 17.74% YoY to ₹4,42,302 crore from ₹3,75,660 crore. RAM accounted for 67.04% of gross domestic advances.
- Within the RAM portfolio, Retail advances grew 17.37%, Agriculture advances increased 17.18%, while MSME advances rose 19.06% YoY.
- Home loans, including mortgage, grew 12.33% YoY in September 2026.
Priority sector advances stood at ₹2,57,647 crore, accounting for 48.67% of ANBC, compared with the regulatory requirement of 40%.
Deposits Rise 12.50%; CASA Ratio at 39.36%
Deposits increased 12.50% YoY to ₹8,74,036 crore in September 2026 from ₹7,76,946 crore in September 2025 during Indian Bank Q2 FY27.
Current deposits grew 27.48%, savings deposits increased 11.55%, while CASA deposits grew 13.77% YoY. The domestic CASA ratio stood at 39.36% as of September 30, 2026.
The bank also strategically reduced its bulk deposits, including certificates of deposit, by 5.60% on a quarter-on-quarter basis, from ₹1.62 lakh crore in June 2026 to ₹1.52 lakh crore in September 2026.
Indian Bank mobilised fresh FCNR(B) deposits amounting to ₹22,486 crore and raised OFCB of ₹3,806 crore during the period.
Also Read: Indian Bank Disburses ₹1,220 Crore Under Retail, Agriculture and MSME Segments
Indian Bank Q2 FY27 Net Profit Rises 14.71%
Indian Bank net profit increased 14.71% YoY to ₹3,462 crore in September 2026 from ₹3,018 crore in September 2025.
On a quarter-on-quarter basis, net profit grew 5.77% from ₹3,273 crore in June 2026.
The Indian Bank Q2 FY27 results also showed a 46.58% YoY increase in operating profit to ₹7,090 crore from ₹4,837 crore in September 2025.
Net interest income increased 17.83% YoY to ₹7,719 crore from ₹6,551 crore.
Return on Assets stood at 1.31%, while Return on Equity was 19.65% in September 2026.
Non-Interest Income Rises 59%
- Non-interest income registered a 59% YoY increase, reaching ₹3,953 crore for the quarter ended September 2026.
- The Q2 FY27 results also showed an improvement in the cost-to-income ratio, which declined by 723 basis points to 39.25% in September 2026 from 44.80% in June 2026.
- The domestic Net Interest Margin stood at 3.42% during the quarter.
- Yield on advances was 8.17%, while the cost of deposits stood at 4.89% in September 2026.
- Fee-based income also grew 10.76% quarter-on-quarter to ₹1,030 crore in September 2026 from ₹930 crore in June 2026.
Asset Quality Improves Further
- Gross NPA declined 99 basis points YoY to 1.61% in September 2026 from 2.60% in September 2025, while Net NPA declined to 0.14% from 0.16%.
- On a quarter-on-quarter basis, GNPA declined 25 basis points from 1.86% in June 2026 to 1.61% in September 2026, while NNPA reduced by one basis point from 0.15% to 0.14%.
The Provision Coverage Ratio, including Technical Write-Offs (TWO), stood at 98.22%.
- The slippage ratio was contained at 0.69% in September 2026 compared with 0.79% in September 2025.
- Capital adequacy ratio stood at 16.21%, while CET-I and Tier-I Capital stood at 15.18% in September 2026.
- Earnings per share increased to ₹102.82 from ₹89.63 in September 2025.
Digital Transactions Account for 96% of Total Transactions
Digital adoption remained a key part of Indian Bank Q2 FY27, with digital transactions accounting for 96% of the bank’s total transactions.
The bank generated business of ₹1,45,344 crore through digital channels in H1 FY27. It has launched 164 digital journeys, utilities and processes so far.
Mobile banking users grew 26% YoY to 2.66 crore, while UPI users increased 20% to 2.89 crore and net banking users rose 2% to 1.20 crore. Fastag and POS users increased 135% and 50%, respectively.
Indian Bank H1 FY27 Performance
For the first half of FY27, net profit increased 12.42% YoY to ₹6,735 crore from ₹5,991 crore in H1 FY26. Operating profit grew 31.65% YoY to ₹12,647 crore from ₹9,607 crore.
- Net interest income increased 17.38% YoY to ₹15,154 crore from ₹12,910 crore.
- Domestic NIM stood at 3.41% in H1 FY27, improving by six basis points from 3.35% in H1 FY26.
- Return on Assets stood at 1.31%, credit cost improved by five basis points YoY to 0.22%, and Return on Equity stood at 19.57%.
The bank’s network comprises 6,017 domestic branches, including three Digital Banking Units, along with three overseas branches and one International Banking Unit at GIFT City.
It also has 5,678 ATMs and BNAs and 18,379 Business Correspondents.
The Indian Bank Q2 FY27 results therefore highlighted growth in business and advances, higher profitability, stronger non-interest income, improved operating efficiency, further improvement in asset quality and continued expansion in digital banking adoption.
