IndusInd Bank shares rose over 2% on Monday after the private sector lender returned to profitability in the second quarter of FY27, supported by lower provisions and improving asset quality.
The stock opened unchanged at ₹835 on the BSE before climbing 2.32% to ₹854.45. The bank reported a net profit of ₹1,242 crore for the July-September quarter, compared with a net loss of ₹437 crore a year earlier.
Profit also increased 20% from ₹1,037 crore in the preceding quarter.
Profit Rises As Provisions Decline
Net interest income (NII) increased 4% year-on-year to ₹4,569 crore but declined 2% sequentially. Advances grew 11% quarter-on-quarter, while the net interest margin (NIM) contracted to 3.23%.
Provisions and contingencies, excluding tax, fell 54% year-on-year to ₹1,223 crore from ₹2,631 crore. Fee and other income jumped 36% to ₹2,248 crore, while net revenue increased 12.5% to ₹6,817 crore.
Pre-provision operating profit rose 40% to ₹2,874 crore, supported by lower operating expenses of ₹3,943 crore. Asset quality improved, with the gross non-performing assets ratio declining to 2.73% from 3.25% in the previous quarter.
The bank's asset quality showed improvement, with Gross Non-Performing Assets (NPA) at 2.73% of gross advances as on September 30, 2026, down from 3.25% as on June 30, 2026. Net NPA also decreased to 0.83% of net advances from 0.95%.
For the half year ended September 30, 2026, net profit was ₹2,279 crore, significantly higher than ₹167 crore in the corresponding previous half year. Net Interest Income for the half year increased to ₹9,254 crore from ₹9,049 crore.
The bank's board approved the appointment of Priyanka Sinha as an Additional Director (Non-Executive Independent Director) for four consecutive years, effective from October 23, 2026, until October 22, 2030. This appointment is subject to shareholder approval.
