Indian Bank (INDIANB) investor relations material

Executive summary

• Achieved strong growth in business, profitability, and asset quality for Q2 FY26, with total business at ₹13.97 lakh Cr, up 12.34% year-over-year; net profit for Q2FY26 was ₹3,018 Cr, up 11% year-over-year.

• Operating profit for Q2FY26 was ₹4,837 Cr, up 2% year-over-year; H1FY26 net profit was ₹5,991 Cr, up 17%.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY2025-26 were approved, with statutory auditors providing unmodified conclusions.

• Maintained healthy capital adequacy at 17.31% and improved asset quality, with gross NPA reduced to 2.6% and net NPA at 0.16%.

• Revised gross NPA guidance downward from less than 3% to less than 2%.

Financial highlights

• Net interest income for Q2FY26 was ₹6,551 Cr, up 6% year-over-year; NIM maintained at 3.23% globally, with domestic NIM at 3.34%.

• CASA grew 7.23% year-over-year and 4.23% sequentially; advances up 12.65% year-over-year and 3.19% sequentially.

• Cost-to-income ratio at 46.48% for Q2FY26, with a sequential rise due to one-off expenses.

• Provision coverage ratio improved to 98.28%.

• Return on assets at 1.32% for Q2; return on equity at 19.58%.

Outlook and guidance

• All previous guidance maintained except for gross NPA, now targeted below 2%.

• Expecting manageable impact from ECL transition, with most provisioning for SMA-1 and SMA-2 to be completed in FY26.

• NIM expected to see slight pressure in Q3 due to MCLR repricing, but should stabilize and recover in Q4 if no further rate cuts.

• Management highlights continued focus on digital expansion, asset quality improvement, and capital adequacy.

• Credit growth guidance remains at 10–12%, with intent to outperform.