Indian Bank (INDIANB) Q2 25/26 earnings summary

Executive summary

• Total business grew 12.34% year-over-year to INR 13.97 trillion, with deposits at INR 7.77 trillion (up 12.09%) and advances at INR 6.20 trillion (up 12.65%).

• Net profit for Q2FY26 was INR 3,018 crore, up 11.49% year-over-year; H1FY26 net profit was INR 5,991 crore, up 17% year-over-year.

• Operating profit for Q2FY26 was INR 4,837 crore, up 2.31% year-over-year; H1FY26 operating profit was INR 9,607 crore, up 4%.

• Asset quality improved: gross NPA down to 2.60%, net NPA at 0.16%, and slippage ratio reduced to 0.79%.

• Board and audit committee approved unaudited results; statutory auditors provided unmodified review reports.

Financial highlights

• Net interest income for Q2FY26 was INR 6,551 crore, up 6% year-over-year; NIM maintained at 3.23%.

• Return on assets at 1.32%; return on equity at 19.58%.

• Cost-to-income ratio at 46.48% for Q2FY26; cost of deposits decreased to 5.01%.

• Provision coverage ratio improved to 98.28%; credit cost at 0.26% in Q2.

• Capital adequacy ratio at 17.31%, CET1 at 14.80%.

Outlook and guidance

• Guidance for gross NPA revised downward to less than 2%; all other guidance maintained.

• Recovery guidance remains at INR 5,500-6,500 crore; AUC recovery on track.

• NIM expected to face mild pressure in Q3 due to MCLR and deposit repricing, but should stabilize and recover in Q4 if no further rate cuts.

• ECL provisioning impact expected to be manageable and largely completed in FY26.

• Management highlights continued focus on digital expansion, asset quality improvement, and capital adequacy.