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Indian Bank Q2 Net Profit Jumps 15% Despite Share Price Drop
- •Indian Bank reported a 14.7% year-on-year increase in standalone net profit to ₹3,462 crore for the September quarter.
- •Net interest income rose 17.8% from last year to ₹7,719 crore, while operating profit grew to ₹7,090 crore.
- •Asset quality saw significant improvement as gross NPAs declined to 1.61% and net NPAs eased to 0.14%.
- •The board approved a fundraising plan of up to ₹7,000 crore through non-equity instruments including infrastructure bonds.
- •Shares of Indian Bank fell over 3% following the earnings announcement, aligning with broader PSU bank sector trends.
Key Questions Answered
For the September quarter of FY27, Indian Bank reported a 14.7% year-on-year increase in standalone net profit to ₹3,462 crore, up from ₹3,018 crore in the year-ago period. Meanwhile, the net interest income (NII) for Q2FY27 rose 17.8% year-on-year to reach ₹7,719 crore.
Indian Bank's asset quality improved during the quarter ending September 30, 2026, with gross non-performing assets (NPAs) declining to 1.61% from 1.86% in the previous quarter and 2.60% a year ago. Net NPAs also eased further to 0.14% compared to 0.15% in the prior quarter.
Indian Bank's board approved a fundraising plan of up to ₹7,000 crore through non-equity instruments, which includes up to ₹5,000 crore via long-term infrastructure bonds for infrastructure and affordable housing, and up to ₹2,000 crore through Basel III-compliant Tier 1 and Tier 2 bonds.
