IndusInd Bank Q2 Results: IndusInd Bank reported a standalone net profit of Rs 1,176 crore for the July-September quarter of FY27, staging a sharp turnaround from a net loss of Rs 445 crore in the year-ago period. Net interest income (NII) grew 4% year-on-year to Rs 4,569 crore.
The return to profitability was driven by a reduction in bad loans and lower provisioning costs, supported by tighter underwriting standards in recent quarters-particularly within the unsecured lending segment.
Asset quality improved sequentially, with gross non-performing assets (GNPA) easing to 2.73% of gross advances as of September 30, down from 3.25% in the previous quarter. Net NPAs also moderated from 0.95% to 0.83% over the same period.
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The private lender's deposits increased 10% YoY to Rs 4.28 lakh crore as of September 30, 2026, compared with Rs 3.89 lakh crore a year earlier. Advances grew 11% to Rs 3.63 lakh crore from Rs 3.25 lakh crore in the corresponding period last year.
Current account and savings account (CASA) deposits stood at Rs 1.19 lakh crore, accounting for nearly 28% of total deposits. This included current account deposits of Rs 36,742 crore and savings account deposits of Rs 83,024 crore.
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Its chief executive and managing director Rajiv Anand said the bank's USD 3.51 billion in FCNR(B) deposit mop-up hurt the NIMs in Q2, but expressed confidence of recouping as the share of retail advances is going up, alongside RBI's rate hikes.
It has chosen to replace higher-cost borrowings with the FCNR(B) money, and will deploy more on advances as and when it feels necessary, Anand said, adding that at present, the liquidity situation is comfortable to take care of loan growth.
Dismissing notions that the over Rs 16,000 crore in FCNR(B) 'related loans' banks had been given the option to lend against the deposits were the prime mover for advances growth during the quarter, a senior official said that even excluding the diaspora angle, wholesale banking was up 10%quarter-on-quarter and retail was up 4%.
Anand said the bank does not see any stress on its rural banking portfolio because of challenges around rains, but it will be extremely cautious and calibrated in growing its microfinance book.
IndusInd Bank plans to add 100 branches to its present network of 3,139 during the remainder of the fiscal year ending in March 2027, Anand said. The bank scrip closed 1.76% down at Rs 835 apiece on the BSE on Friday, against a 0.17 per cent correction on the benchmark.
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