IndusInd Bank, India’s fifth-largest private sector lender, on Friday reported a net profit of ₹1,242 crore for the second quarter of financial year 2026-27 (Q2FY27), compared to a loss of ₹437 in Q2FY26. The net profit, which was bolstered by a sharp drop in provisions and a jump in total other income, was up 20 per cent sequentially.
Net interest Income (NII) of the lender at ₹4,569 crore was up 4 per cent year-on-year (Y-o-Y) but down 2 per cent sequentially in Q2FY27, while total other income was up 36 per cent Y-o-Y to ₹2,248 crore.
Meanwhile, the lender's net interest margin (NIM) stood at 3.23 per cent in Q2FY27, down 34 basis points (bps) from the previous quarter, and 9 bps from the corresponding period a year ago.
Its provisions and contingencies were down 54 per cent Y-o-Y and 12 per cent sequentially to ₹1,223 crore.
The bank reported gross slippages of ₹1,460 crore in Q2FY27, compared to ₹1,660 crore in Q1FY27, and ₹2,537 crore in the corresponding period a year ago. The lender’s asset quality improved significantly, with gross non-performing asset (NPA) ratio down 52 bps at 2.73 per cent, while net NPA ratio was down 12 bps at 0.83 per cent.
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Its loan book grew 11 per cent Y-o-Y as well as sequentially to ₹3.63 trillion, driven by over 38 per cent growth in consumer banking, which includes ₹16,564 crore FCNR(B) deposits. The bank’s wholesale book also grew 10 per cent Y-o-Y as well as sequentially during this period.
Meanwhile, the bank’s deposits were up 10 per cent Y-o-Y and 3 per cent sequentially at ₹4.28 trillion, aided by $3.51 billion in FCNR(B) mobilisation.
“Growth momentum has picked up, and we kept a prudent approach to risk and liquidity. We also made further progress on our strategic priorities with better asset quality, a stronger balance sheet mix, and higher profitability. These results show the benefits of disciplined action we've been taking over the last few quarters,” said Rajiv Anand, managing director and chief executive officer (MD & CEO), IndusInd Bank.
“Under the Reserve Bank of India (RBI) swap window, we mobilised $3.51 billion of FCNR(B) deposits. This implies a market share of around 2.2 per cent under the scheme, while our share in overall deposits is 1.5 per cent. The growth was also supported by a relatively higher share of retail and non-leverage deposits, reinforcing the quality of our funding profile,” Anand further said.
He also highlighted that with business momentum picking up, the bank plans to add about 100 branches in the second half (H2) of FY27, expanding into under-penetrated geographies and re-accelerating growth in select markets where expansion has previously moderated. “These investments in distribution, reach, and sales capacity position us well to support future growth”, he said.