Indian BankNet profit ₹3,462 Cr +14.71%, guidance raised

Indian Bank reported Q2 FY27 net profit of ₹3,462 crore, up 14.71%, helped by gains on its NSE shareholding after the exchange listed.

Operating profit crossed ₹7,000 crore, up 46.58%, or 18% excluding NSE. Advances grew 16.39% and deposits 12.50%, with the CASA ratio at 39.36%. Net interest income rose 17.83% and NIM improved 8 basis points year on year. Gross NPA fell to 1.61% and net NPA was 0.14%, with the SMA book down to 4.19%. The bank made an ECL provision of ₹1,500 crore in the quarter, against an expected total impact of ₹3,500 crore, and the held-to-maturity valuation impact will come on top.

Capital adequacy was 16.21%. The managing director raised deposit growth guidance to 11% to 12% from 9% to 11%, and advances growth guidance to 13% to 14% from 11% to 13%. After a 25 basis point repo rate increase he expects NIM to rise by 5 to 7 basis points, while treasury income will be muted. The bank raised USD 2.3 billion of FCNR(B) deposits.