Indian Bank has reported a robust financial performance for the second quarter of the fiscal year 2026-27, ending on September 30, 2026. The bank’s net profit surged by 14.71% year-on-year to ₹3,462 crore, up from ₹3,018 crore in the same period last year, driven by improved operational efficiency and disciplined cost management.
The bank’s total business witnessed a substantial increase of 14.22% year-on-year, reaching ₹15,96,018 crore. This growth was supported by a 16.39% rise in gross advances, which stood at ₹7,21,982 crore. The advances were primarily bolstered by strong traction in the Retail, Agriculture, and MSME (RAM) portfolios. Meanwhile, total deposits grew by 12.50% to ₹8,74,036 crore, underpinned by a healthy Current Account Savings Account (CASA) ratio of 39.36%.
Operating profit for the quarter saw a remarkable growth of 46.58% year-on-year, amounting to ₹7,090 crore. The bank’s non-interest income also recorded a significant increase of 59% year-on-year, reaching ₹3,953 crore. Notably, the cost-to-income ratio improved by 723 basis points to 39.25%, reflecting the bank’s focus on cost efficiency. Furthermore, the asset quality showed marked improvement, with Gross Non-Performing Assets (GNPA) reducing to 1.61% and Net Non-Performing Assets (NNPA) to 0.14%.
Indian Bank’s strategic initiatives in digital adoption have also paid off, with digital transactions accounting for 96% of total transactions, showcasing the bank’s commitment to enhancing customer engagement through technology. The bank has also been active in raising funds, mobilising fresh FCNR(B) deposits amounting to ₹22,486 crore and raising OFCB of ₹3,806 crore.
The positive financial results reflect Indian Bank’s strong operational performance and strategic focus on key growth areas. Analysts note that the bank’s emphasis on digital transformation and cost management, coupled with a robust loan growth strategy, positions it well for sustained performance in the coming quarters. The bank’s ability to maintain a strong capital adequacy ratio of 16.21% further underscores its financial stability and growth potential.
