<a href="https://www.mid-day.com/business/business-news/article/indusind-banks-deputy-ceo-resigns-after-rs-1960-crore-accounting-lapse-23530554" target="_blank" rel="none noopener">Private sector lender IndusInd Bank</a> on Friday reported a standalone net profit of Rs 1,176.06 for the second quarter ended September 30, 2026.&nbsp;
It had posted a net loss of Rs 444.79 crore in the corresponding quarter last year.
On a consolidated basis, the bank recorded a net profit of Rs 1,242 crore during the quarter under review as against a net loss of Rs 437 crore in the year-ago period, it said in a regulatory filing.
<h2>Net Interest Margin shrinks</h2>
Net Revenue for the quarter under review stood at Rs 6,817 crore as against Rs 6,060 crore for the corresponding quarter in the previous year. &nbsp;Net Interest Income for the Q2 FY27 at Rs 4,569 crore, compared to Rs 4,409 crore in Q2 FY26. Net interest income is the difference between interest earned and interest paid, a key metric to understand a bank&rsquo;s financial stability.&nbsp;
The bank's net interest margin (NIM) contracted to 3.23 per cent during the reporting quarter compared to 3.32 per cent in the previous year. Net interest margin is a key financial metric to understand a bank&rsquo;s profitability.
<a href="https://www.mid-day.com/business/business-news/article/sir-indusind-bank-md-ceo-says-his-name-unmapped-from-voting-list-23652238" target="_blank" rel="none noopener">IndusInd Bank Managing Director and Chief Executive Officer Rajiv Anand</a> said the bank's USD 3.51 billion in FCNR(B) deposit mobilisation impacted the NIMs, but expected it to improve &nbsp;with the increasing share of retail advances, along with the Reserve Bank of India's repo rate hike, according to news agency PTI.
<h2>Deposits and advances</h2>
The bank's deposits stood at Rs 4,28,832 crore in the September quarter compared to Rs 3,89,600 crore in the corresponding quarter in the previous year. Advances during the reporting quarter stood at Rs 3,63,104.34 as against Rs 3,25,880.67 in the year ago period.
CASA (Current Account and Savings Account) deposits were at Rs 1,19,766 crore, with Current Account deposits at Rs 36,742 crore and Savings Account deposits at Rs 83,024 crore. CASA deposits comprised 27.93 per cent of total deposits as on September 30, 2026.
Anand said the lender has chosen to replace higher-cost borrowings with the FCNR(B) money, and will deploy more on advances as and when it feels necessary, according to PTI. He added that the liquidity situation is comfortable to take care of loan growth.
<h2>Asset quality</h2>
IndusInd Bank does not see any stress on its rural banking portfolio because of monsoon deficiency, but Anand said it will be extremely cautious and calibrated in growing its microfinance book.
In terms of asset quality the bank's <a href="https://www.mid-day.com/mumbai/mumbai-news/article/rbi-report-says-npas-of-indian-banks-fell-to-multi-decadal-low-of-2-1-per-cent-23609794" target="_blank" rel="none noopener">gross non-performing assets</a> (GNPA) ratio improved to 2.73 per cent compared to 3.60 per cent in the year ago period, and 3.25 in the June quarter. The net NPA ratio too improved at 0.83 per cent as against 1.04 per cent in the previous year and 0.95 per cent in the June quarter.
The bank's Provision Coverage Ratio was at 70.19 pert cent, with provisions and contingencies (other than tax) for the reporting quarter at Rs 1,223 crore compared to Rs 2,631 crore in the same quarter in the previous year.&nbsp;
(With inputs from PTI)

The bank recorded a consolidated net profit of Rs 1,242 crore during the quarter under review as against a net loss of Rs 437 crore in previous year

IndusInd Bank reports Rs 1,242 crore net profit for Q2FY27

Strong macro fundamentals, policy interventions anchor Indian economy against global headwinds: RBI

On a consolidated basis, the bank recorded a net profit of Rs 1,242 crore during the quarter under review as against a net loss of Rs 437 crore in the year-ago period

IndusInd Bank reports Rs 1,242 crore net profit for Q2FY27; NIM shrinks

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Home / Business / Business News / Article / IndusInd Bank reports Rs 1,242 crore net profit for Q2FY27; NIM shrinks