IndusInd Bank Q2 FY27 Results: Profit Reached ₹1,242 Crore And Gross NPA Fell To 2.73%; Shares Ended The Day In Red

The September quarter brought a marked earnings recovery for IndusInd Bank. Consolidated net profit stood at ₹1,242 crore for the quarter ended September 30, 2026, compared with a net loss of ₹437 crore in the corresponding period last year. Higher operating profit helped, as did lower provisions and a reduction in non-performing assets.

According to the bank’s investor presentation dated 23 October 2026, consolidated operating profit rose 40% year-on-year (YoY) to ₹2,874 crore, while net interest income (NII) increased 4% to ₹4,569 crore. Gross non-performing assets (GNPA) declined to 2.73% from 3.60% a year earlier.

Despite the improvement in quarterly performance, IndusInd Bank shares closed 1.82% lower at ₹835 on the National Stock Exchange (NSE) on 23 October 2026. The stock had closed at ₹850.50 in the previous session and opened at ₹852 on the day.

IndusInd Bank Q2 FY27 Results: Key Financial Highlights

The bank’s consolidated financial performance improved during the quarter, with stronger operating income and lower expenses supporting profitability.

Key highlights include:

• Total income: Increased 12% YoY to ₹6,817 crore from ₹6,061 crore.

• Other income: Rose 36% to ₹2,248 crore.

• Operating expenses: Declined 2% to ₹3,943 crore.

• Operating profit: Increased 40% to ₹2,874 crore from ₹2,047 crore.

• Provisions and contingencies: Fell 54% to ₹1,223 crore from ₹2,631 crore a year earlier.

For the first half of FY27, consolidated net profit stood at ₹2,279 crore, compared with ₹167 crore in the corresponding period last year. Operating profit increased 22% to ₹5,648 crore, while NII rose 2% to ₹9,254 crore.

Asset Quality Improves Further

IndusInd Bank continued to report an improvement in asset quality during Q2 FY27. GNPA declined to 2.73%, compared with 3.25% in the previous quarter and 3.60% in Q2 FY26. Net non-performing assets (NNPA) also fell to 0.83% from 0.95% in Q1 FY27 and 1.04% a year earlier.

Fresh additions to NPAs declined to ₹1,460 crore from ₹1,660 crore in the preceding quarter. Credit costs also eased to 1.40% of average loans from 1.74% in Q1 FY27.

There was a modest dip in the provision coverage ratio (PCR). It settled at 70%, against 71% in the previous quarter and 72% a year earlier, reflecting a slight contraction in the proportion of gross NPAs covered by provisions.

Loan And Deposit Growth Remains Strong, But NIM Declines

The bank’s balance sheet continued to expand, with advances increasing 11% YoY to ₹3,63,104 crore and deposits rising 10% to ₹4,28,832 crore. Total assets grew 10% to ₹5,80,148 crore.

However, net interest margin (NIM) declined to 3.23% from 3.57% in the previous quarter. The bank attributed the pressure to the mobilisation of foreign currency non-resident bank (FCNR(B)) deposits, with the impact partly offset by other profit-and-loss items.

Quarter-on-quarter, NII declined 2% to ₹4,569 crore, even as operating profit rose 4% to ₹2,874 crore. The increase in other income and lower provisions helped support the improvement in reported profitability.

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