partnership · Launched
Xpedite cross-border remittance solution
- Expected benefit
- Simplify international payments for SME and corporate banking clients
- Timeline
- Q2 FY27
Q2 FY27 · NSE: INDUSINDBK
Indusind Bank
Results filed 23 October 2026 · Market cap ₹65,292 crore · PE 21.8
- Net interest income
- +3.6%
- on a year ago
- Pre-provision profit
- +40.4%
- on a year ago
- Profit to shareholders
- Back to profit
- from a loss a year ago
IndusInd Bank reported a net profit of ₹1,242 crore for Q2 FY27, recovering from a net loss of ₹437 crore in the previous year due to a 54% reduction in provisions. Asset quality continued to improve, with Gross NPAs declining to 2.73% and credit costs easing to 1.40% of loans. However, core Net Interest Margin contracted 34 bps QoQ to 3.23% following FCNR(B) deposit mobilization, and the CASA ratio remained muted at 27.93%.
| Q2 FY27 | Q1 FY27 | vs previous quarter | Q2 FY26 | vs a year ago | |
|---|---|---|---|---|---|
| Net interest income | 4,569 | 4,685 | −2.5% | 4,409 | +3.6% |
| Other income | 2,248 | 1,787 | +25.8% | 1,651 | +36.1% |
| Profit before provisions | 2,874 | 2,773 | +3.6% | 2,047 | +40.4% |
| Provisions | 1,223 | 1,384 | −11.7% | 2,631 | −53.5% |
| Profit to shareholders | 1,242 | 1,037 | +19.7% | −437 | n.m. |
| Gross NPA | 2.7% | 3.3% | −52 bps | 3.6% | −87 bps |
Source: Indusind Bank Limited’s filing to NSE, 23 October 2026. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.
These notes are from the presentation and press release. The concall transcript isn’t filed yet; the notes are rewritten when it is.
What stood out
- Significant turnaround to profitability from a net loss a year ago, driven by a 54% YoY drop in provisions
Source
Net profit reached ₹1,242 crore in Q2 FY27 compared to a net loss of ₹437 crore in Q2 FY26, as provisions dropped from ₹2,631 crore to ₹1,223 crore (Investor Presentation, pages 5, 7). - Sharp compression in Net Interest Margin (NIM) QoQ due to FCNR(B) mobilization
Source
NIM fell 34 bps QoQ to 3.23% vs 3.57% in Q1 FY27, attributed to 'NIM Impact coming from FCNR (B) mobilization; offset by other P&L line items' (Investor Presentation, pages 4, 28). - Advances boosted by Retail FCNR(B) deposits related advances
Source
Total advances rose 11% QoQ to ₹3,63,104 crore, which included 'Retail FCNR(B) deposits related Advances of 16,564 Cr' (Investor Presentation, pages 13, 16).
Guidance
No guidance given.
Tailwinds
- Improvement in headline asset quality metrics and declining credit costs
Source
Gross NPA declined to 2.73% from 3.25% QoQ and 3.60% YoY; credit cost fell to 1.40% of average loans vs 1.74% QoQ and 3.24% YoY (Investor Presentation, pages 4, 24). - Strong sequential and YoY growth in non-interest income
Source
Other income grew 36% YoY and 26% QoQ to ₹2,248 crore, supported by retail fees and trading income (Investor Presentation, pages 7, 29). - Reduction in stress pools and SMA levels
Source
SMA 1 & SMA 2 decreased to 0.05% of net advances from 0.12% QoQ, and net security receipts declined to 0.03% from 0.07% QoQ (Investor Presentation, pages 4, 22).
Headwinds
- NII contraction QoQ alongside margin compression
Source
Net Interest Income fell 2% QoQ to ₹4,569 crore from ₹4,685 crore as NIM contracted 34 bps QoQ to 3.23% (Investor Presentation, pages 5, 28). - Deterioration in Savings Account balances and CASA ratio
Source
SA deposits fell 5% YoY and 5% QoQ to ₹83,024 crore, bringing overall CASA down to 27.93% of total deposits (Investor Presentation, page 6; Press Release, page 3). - Sequential moderation in capital adequacy ratios
Source
CRAR declined by 56 bps QoQ to 16.59% (CET-1 fell 54 bps QoQ to 15.55%) from 17.15% in Q1 FY27 (Investor Presentation, pages 5, 32).
New businesses and products
partnership · Active
Partnership with Navi
- Expected benefit
- Strengthen everyday digital payments on retail digital platforms
- Timeline
- Q2 FY27
Source
Strategic partnership to strengthen everyday digital payments with Navi (Investor Presentation, page 20).new product · Launched
INDIE App Digital Features (FD Secure Lock and Money In Money Out)
- Expected benefit
- Provide extra protection for fixed deposits and expense tracking for digital retail users
- Timeline
- Q2 FY27
Source
New Digital Offerings: FD Secure Lock (Extra Protection for Your FD) and Money In Money Out (Know Every Swipe's Story) (Investor Presentation, page 20).Things to check
- Low CASA ratio and declining savings account base
Source
CASA ratio stood at 27.93%, with SA deposits declining 5% YoY and 5% QoQ to ₹83,024 crore (Investor Presentation, page 6; Press Release, page 3). - Significant lumpiness in retail loan growth driven by FCNR(B) deposits-related advances
Source
Other Retail advances jumped 285% QoQ to ₹24,414 crore primarily because Q2 FY27 included 'Retail FCNR(B) deposits related Advances of 16,564 Cr' (Investor Presentation, page 16).
How the call went
Not yet: there’s no transcript.
Numbers against the story
The bank highlights 'acceleration in business momentum across segments' and an 11% QoQ loan growth; however, ₹16,564 crore of this advance growth stems from retail FCNR(B) deposit-backed lending, which also weighed heavily on Net Interest Margins (down 34 bps QoQ to 3.23%) and caused NII to contract 2% QoQ.
Sources
- Press release · filed 23-Oct-2026
- Investor presentation · filed 23-Oct-2026
- Figures: the company’s results filing with NSE, linked under the table.
Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.