IndusInd Bank Q2 Profit at ₹1,242 Crore as Provisions Fall 54%

IndusInd Bank swung to a consolidated net profit of ₹1,242 crore for the September quarter from a loss a year earlier, as provisions fell 54% and asset quality improved, the lender said on Friday.

The IndusInd Bank Q2 profit compares with a consolidated net loss of ₹437 crore in the same quarter last year. On a standalone basis, the private lender earned ₹1,176 crore against a loss of ₹445 crore, according to reports on its results.

Sequentially, consolidated profit rose 51% from a normalised ₹824 crore in the June quarter. For the first half of FY27, consolidated profit stood at ₹2,279 crore, compared with ₹167 crore a year earlier. Half-yearly pre-provision operating profit rose 22% to ₹5,648 crore, while net interest income grew 2% to ₹9,254 crore.

Lower provisions lift IndusInd Bank Q2 profit

Provisions and contingencies dropped to ₹1,223 crore from ₹2,631 crore a year ago. Gross slippages eased to ₹1,460 crore, from ₹2,537 crore in the year-ago quarter and ₹1,660 crore in the June quarter.

Pre-provision operating profit rose about 40% year-on-year to ₹2,874 crore. Fee and other income jumped about 36% to ₹2,248 crore, while operating expenses declined to ₹3,943 crore from ₹4,013 crore. Net revenue rose about 12% to ₹6,817 crore from ₹6,060 crore.

Core lending income was weaker. Net interest income grew about 4% to ₹4,569 crore but fell 2% from the previous quarter. Net interest margin slipped to 3.23%, down 34 basis points sequentially and 9 basis points from a year ago.

Yield on assets fell to 8.35% from 8.75% a year earlier, while the cost of funds eased to 5.11% from 5.43%. The faster fall in yields squeezed the bank’s spread on loans.

IndusInd Bank NPA ratios improve

Gross non-performing assets fell to 2.73% of loans from 3.25% at the end of June and 3.60% a year ago. Net NPA eased to 0.83% from 0.95% in June, and the provision coverage ratio stood at 70.19%.

Advances grew 11% year-on-year to ₹3,63,104 crore, and deposits rose 10% to ₹4,28,832 crore. Current and savings account deposits made up 27.93% of total deposits. Total capital adequacy stood at 16.59%, against 17.10% a year earlier, with Tier 1 capital at 15.55%.

Retail deposits, as defined for liquidity coverage purposes, rose to ₹2,01,780 crore from ₹1,80,475 crore a year earlier. A steadier retail base gives the bank more stable funding after last year’s disruption.

“Q2 reflects the growing strength of the IndusInd Bank franchise,” Managing Director and CEO Rajiv Anand said, adding that the bank was entering the second half with confidence.

The bank serves about 42 million clients through 3,139 branches and banking outlets and 2,773 ATMs. Its total balance sheet grew to ₹5,80,148 crore from ₹5,27,490 crore a year earlier.

What the turnaround means for investors

The results extend a recovery at the Hinduja-backed lender. Anand took charge in August 2025 after the bank disclosed a ₹1,979 crore hit from accounting lapses in its derivatives portfolio, which weighed heavily on its earnings and investor confidence.

For investors, the IndusInd Bank Q2 profit shows that lower credit costs and cleaner books are starting to pay off. The squeeze on margins, however, remains a concern, and larger private peers such as ICICI Bank, which reported 30% loan growth in Q2, have expanded their balance sheets faster.

IndusInd Bank shares closed 1.82% lower at ₹835 on the NSE on Friday, before the results were announced. Monday’s trade will show whether investors reward the improvement in asset quality over the pressure on margins.

Going ahead, analysts will track whether margins stabilise, whether slippages keep falling and whether loan growth can pick up without adding risk. Detailed results are available on the IndusInd Bank investor relations page.

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Meta title: IndusInd Bank Q2 Profit at ₹1,242 Crore, Swings From Loss (57 characters)
Meta description: IndusInd Bank Q2 profit came in at ₹1,242 crore against a year-ago loss, as provisions fell 54% and gross NPA eased to 2.73%. Key numbers inside. (145 characters)
Focus keyword: IndusInd Bank Q2 profit
Secondary keywords: IndusInd Bank NPA, Rajiv Anand, private bank results
Slug: indusind-bank-q2-profit-turnaround
Tags: IndusInd Bank, Rajiv Anand, Banking, Q2 FY27 Results, Asset Quality
Category: Business News + Markets & Finance
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Internal links used: ICICI Bank Q2 FY27 results (/news/icici-bank-q2-fy27-results-net-profit/)
Note: Headline profit is consolidated (₹1,242 crore vs loss of ₹437 crore); standalone ₹1,176 crore vs loss of ₹445 crore per Lapaas Voice — some outlets headline ₹1,176 crore or ₹1,241 crore, verify against the exchange filing. NIM 3.23% from Kotak Neo/Lapaas (not in Equitybulls release summary). Year-ago GNPA 3.60%/NNPA 1.04% from Kotak Neo/Lapaas. Background on Rajiv Anand (took charge August 2025) and ₹1,979 crore derivative lapse taken from Outlook Business/Business Standard search-result headlines only, not read in full — verify. Official IndusInd press release not accessed (link points to investor landing page). Phrasly AI check (24 Oct, full body): 9.5% AI probability, 0 of 33 sentences flagged; Pangram, Originality, ZeroGPT, TurnItIn, Copyleaks and GPTZero all read Human. No further humanization applied.

Sources (fact-check):

• https://www.equitybulls.com/news/377596/indusind-bank-reports-1-242-crores-net-profit-in-q2-fy27
• https://www.kotakneo.com/news/stocks/indusind-bank-q2-fy-27-results/
• https://lapaasvoice.com/indusind-bank-reports-%E2%82%B91176-crore-q2-profit-as-loan-growth-and-asset-quality-improve