IndusInd Bank Limited posted a net profit of ₹1,242 crore for the quarter ended September, up 20% sequentially and trimming net loss of ₹437 for the same quarter in the preceding year. The bank had incurred net loss for the same period in previous year due to an increase in microfinance provisioning and write-offs. 

The bank’s bottom line for Q2FY27 was supported by a rise in net interest income, which stood at ₹4,569 crore as against ₹4,409 crores a year ago. Sequentially, interest income declined by 2%. NII for half year (H1FY27) rose to ₹9,254, up 2.3% on year. 

Asset quality of the bank improved substantially, with gross non-performing assets (NPA) ratio at 2.73% compared to 3.60% on year and net NPA declining to 0.83% from 1.04% in Q2FY26. However, the net interest margin of the bank slipped to 3.23% from 3.32% a year ago.  

Net revenue of the bank for the period rose to ₹6,817 crores compared to ₹6,00 crores a year. A decline in operating expenses also helped push the bottom-line numbers, with expenses slipping to ₹3,943 crores in July-Septemeber from ₹4,013 crore for the same period last year.  

Deposits of the bank rose 10% year-on-year to ₹4.28 crores. Advances of the bank for the period stood at 3.63 crores. 

IndusInd held provisions of $9,012 crore as of September 30, with the provision coverage ratio at 70%. 

IndusInd Bank raised nearly $3.5 billion via the Reserve Bank of India’s special window for foreign currency non-resident bank (FCNR-B) account, which was impacted the contraction in NIM. The bank said recovery in margin related to FCNR-B is expected over the next two quarters. 

“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,” Rajiv Anand, Managing Director and Chief Executive Officer of IndusInd Bank said.  

Also read | IndusInd bank’s Q1FY27 PAT up 47% on lower provisions

The bank also informed the exchanges on Friday (October 23, 2026) that the Board of Directors of the lender has appointed Priyanka Sinha as an Additional Director in the category of Non-Executive Independent Director for a period of four consecutive years, till October 22, 2030.  

Speaking to the media at post-earnings conference call, the bank said it remains confident of reaching a 1% exit return on assets for FY27. Bank also expects loans growth momentum to continue driven by retail and wholesale lending. Shares of IndusInd Bank Ltd closed at ₹835.00 on Friday, down 1.76%, on the BSE.