Indian Bank (INDIANB) Q2 26/27 earnings summary

Executive summary

• Q2FY27 total business grew 14.22% YoY to ₹15.96 lakh crore; deposits rose 12.50% and advances 16.39%.

• Standalone Q2 net profit increased 14.71% YoY to ₹3,462.24 crore; H1 net profit reached ₹6,735.33 crore.

• GNPA improved to 1.61% from 2.60% a year earlier; NNPA was 0.14%.

Financial highlights

• Q2 total income was ₹23,058.62 crore; net interest income rose 17.83% YoY to ₹7,719 crore.

• Q2 operating profit increased 46.58% YoY to ₹7,090.04 crore; profit before tax was ₹4,868 crore.

• Q2 other income rose 58.95% YoY to ₹3,953 crore, including ₹1,386.67 crore from NSE share listing gains: ₹252.50 crore realized and ₹1,134.17 crore revaluation gain.

• Q2 total provisions were ₹3,628 crore, including ₹1,882 crore for standard advances and ₹370 crore for NPA advances.

• H1 net interest income rose 17.38% to ₹15,154 crore; operating profit increased 31.65% to ₹12,647 crore and net profit 12.42% to ₹6,735 crore.

Outlook and guidance

• FY27 deposit growth guidance was raised to 11%–12% and advances growth to 13%–14%; guidance also includes domestic CASA of 40% and credit-deposit ratio of ~80%.

• FY27 targets include NIM of 3.10%–3.25%, GNPA of 1.50%–1.60%, NNPA of 0.15%–0.20%, RoA of 1.20%–1.30% and cost-to-income of ~45%.

• Recovery guidance is ₹4,500–₹5,500 crore, including ₹1,200–₹1,500 crore through AUC, ~₹500 crore through NCLT and ~₹200 crore through ARC sale.

• Credit cost and slippage ratio guidance are each below 1%; management expects Q3 NIM expansion of 5–7 bps.

• Corporate credit pipeline totals ₹63,000 crore: ₹30,000 crore sanctioned and pending disbursement, ₹10,000 crore approved in principle and ₹23,000 crore under discussion.