IndusInd Bank, India's fifth-largest private lender, announced a net profit of 1242 crore rupees for the second quarter of the fiscal year 2026-27 (Q2FY27). This figure significantly exceeds the loss of 437 crore rupees recorded in the same period last year. The profit growth was driven by a sharp reduction in provisions and an increase in total income from other operations.
The bank's Net Interest Income (NII) stood at 4569 crore rupees, showing a 4% year-on-year (Y-o-Y) growth, although it decreased by 2% compared to the previous quarter in Q2FY27. Meanwhile, total income from other operations increased by 36% year-on-year, reaching 2248 crore rupees.
The bank's Net Interest Margin (NIM) in Q2FY27 was 3.23%, which is 34 basis points (bps) lower than the previous quarter and 9 basis points lower than the corresponding period a year ago. Provisions and associated expenses decreased by 54% year-on-year and by 12% compared to the previous quarter, totaling 1223 crore rupees.
The bank reported gross write-offs of 1460 crore rupees in Q2FY27, compared to 1660 crore rupees in Q1FY27 and 2537 crore rupees a year earlier. The quality of the bank's assets improved substantially: the Gross Non-Performing Assets (NPA) ratio decreased by 52 basis points to 2.73%, and the Net NPA ratio fell by 12 basis points to 0.83%.
The loan portfolio grew by 11% year-on-year to a sequential total of 3.63 trillion rupees. This growth was supported by over a 38% increase in consumer banking, which includes 16,564 crore rupees in FCNR(B) deposits. Furthermore, the bank's wholesale portfolio also increased by 10% year-on-year and sequentially during the reporting period.
The bank's deposits grew by 10% year-on-year and 3% sequentially, reaching 4.28 trillion rupees. This was made possible by attracting $3.51 billion in FCNR(B) deposits.
Rajiv Anand, Managing Director and CEO of IndusInd Bank, noted that 'the growth momentum has intensified, and we have maintained a prudent approach to risks and liquidity. We have also made further progress in realizing our strategic priorities through asset quality improvement, a stronger balance sheet, and enhanced profitability. These results demonstrate the benefits of the disciplined actions we have taken over the past few quarters.'
Anand added that within the Reserve Bank of India's (RBI) exchange window, the bank attracted $3.51 billion in FCNR(B) deposits. He explained that this accounts for about 2.2% of the market share under this scheme, and the bank's share of total deposits is 1.5%. Growth was also supported by a relatively higher proportion of retail and non-leveraged deposits, which strengthens the quality of the funding profile.
Furthermore, highlighting the activation of business activity, Anand stated that the bank plans to open about 100 new branches in the second half (H2) of FY27. These openings are aimed at entering underserved territories and accelerating growth in certain markets where expansion had previously slowed. He concluded that such investments in distribution, reach, and sales capabilities well position the bank to support future growth.
