IndusInd Bank has reported a net profit of Rs 1,242 crore for the second quarter of the fiscal year 2026-27 (Q2 FY27). This marks a substantial improvement compared to a net loss of Rs 437 crore in the same period last year, and a 51% increase quarter-on-quarter from Rs 824 crore in Q1 FY27.
The bank's Net Interest Income (NII) for Q2 FY27 reached Rs 4,569 crore, demonstrating a 3.62% rise year-on-year from Rs 4,409 crore in Q2 FY26. However, the Net Interest Margin (NIM) saw a slight decline, moving from 3.32% in the year-ago period to 3.23%.
Financial Highlights and Operational Performance
IndusInd Bank's net revenue for the quarter increased to Rs 6,817 crore, up from Rs 6,060 crore in Q2 FY26. Concurrently, operating expenses showed efficiency, decreasing to Rs 3,943 crore from Rs 4,013 crore during the comparative period. The pre-provision operating profit (PPOP) also saw a healthy rise, reaching Rs 2,874 crore in Q2 FY27 from Rs 2,047 crore a year prior.
As of Q2 FY27, the bank's net worth stood at Rs 65,985 crore, an increase from Rs 62,524 crore reported in the previous year. Deposits surged to Rs 4,28,832 crore, compared to Rs 3,89,600 crore in Q2 FY26, indicating strong deposit growth.
Asset Quality Improves
On the asset quality front, IndusInd Bank demonstrated notable improvement. The gross non-performing asset (NPA) ratio decreased to 2.73% in Q2 FY27 from 3.60% in Q2 FY26. Similarly, the net NPA ratio improved to 0.83% from 1.04% over the same period. The provision coverage ratio (PCR) was 70.19% in Q2 FY27, slightly down from 71.81% in the year-ago quarter.
The private lender's capital adequacy ratio (CRAR) was reported at 16.59% as of September 30, 2026, a marginal decrease from 17.10% on September 30, 2025. Its average liquidity coverage ratio (LCR) stood at 127% in Q2 FY27, down from 132% in Q2 FY26.
Commenting on the results, Rajiv Anand, MD and CEO of IndusInd Bank, stated, "Despite a challenging global environment, India's macroeconomic fundamentals remained resilient supported prudent policy decisions, creating a constructive backdrop for the banking sector. Against this backdrop, Q2 reflects the growing strength of the IndusInd Bank franchise and the progress we have made in rebuilding momentum across the business. Our Q2 results demonstrate that the growth has strengthened, profitability has improved, asset quality trends remain encouraging, and our funding profile is becoming more granular and resilient."
Market Reaction
Following the announcement of its quarterly earnings after market hours, IndusInd Bank shares settled 1.76% lower at Rs 835 on Friday.