IndusInd Bank (INDUSINDBK) investor relations material

Executive summary

• Deposits and advances returned to double-digit YoY growth; profitability and asset quality improved, with funding mix shifting toward granular retail deposits.

• Q2FY27 net profit was ₹1,242 crore versus a year-earlier loss; H1 net profit was ₹2,279 crore.

• H2 priorities include quality growth, stronger deposits, transaction banking and fees, and continued credit-cost normalization.

Financial highlights

• Net interest income was ₹4,569 crore, up 4% YoY and down 2% QoQ; NIM was 3.23% versus 3.57% in Q1, with FCNR(B) mobilization a key pressure.

• Non-interest income was ₹2,248 crore, up 26% QoQ; operating profit was ₹2,874 crore, up 40% YoY and 15% QoQ on a normalized basis.

• PAT was ₹1,242 crore, versus normalized ₹824 crore in Q1 and a ₹437 crore loss a year earlier; it rose 20% QoQ.

• Operating expenses were ₹3,943 crore, up 7% QoQ and down 2% YoY; higher business volumes, growth spending, marketing and brand initiatives contributed to the QoQ increase.

• Provisions and contingencies were ₹1,223 crore, down 12% QoQ and 54% YoY, alongside lower net slippages.

Outlook and guidance

• FY27 exit ROA ambition remains 1%; medium-term ambition is 175–180 bps, with timing dependent on execution and no FY28 target given.

• Loan growth is expected to be in line with the market; H1 momentum supports confidence, while YoY comparisons reflect the prior-year book contraction.

• H2 priorities are accelerating quality growth, building granular savings deposits, deepening transaction banking and fees, and normalizing credit costs.

• Management expects to recoup the recent NIM decline over the next two quarters through retail asset growth, liability optimization and CASA efforts.

• About 100 branches are planned for H2; festive seasonality may support vehicle and rural lending, subject to macro conditions.