Financial Services · NSE: INDIANB
Indian Bank
Q2 FY27 earnings call · Guided by management
Call held 15 Oct 2026 · Read the filing on NSEFiling
- M.Cap
- ₹1,27,409Cr₹1.27L Cr
- P/E
- 9.6×
- 1Y return
- +9.04%
- From 52W high
- −5.5%
Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q2 FY27, as filed · consolidated · ₹ Cr
| Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ | |
|---|---|---|---|---|---|
| Interest earned | 19,149 | 16,628 | +15.2% | 18,095 | +5.8% |
| Net interest income | 7,760 | 6,589 | +17.8% | 7,438 | +4.3% |
| Operating profit | 7,080 | 4,862 | +45.6% | 5,588 | +26.7% |
| Net profit | 3,541 | 3,108 | +13.9% | 3,357 | +5.5% |
| EPS (₹) | 26.29 | 23.07 | +14.0% | 24.92 | +5.5% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
Guidance
Recovery guidance not revised; management expects to do better than guided
Binod Kumar · MD & CEO · p. 4
Recovery guidance not revised; management expects to do better than guided
“I am not revising the recovery guidance, but I believe we will do better than what we have guided.”
More figures from the call
“So, 12% deposit growth is expected and we will be able to maintain.”
“Even so, I expect advances growth of 14-15%, and I am comfortable with that; it will not fall substantially.”
“That is why I am not changing our growth view; growth of 12-13% is fine with me.”
“No. The capital adequacy ratio is already 16.21%, and by March-end profits will be ploughed back, taking it to around 17-17.5%.”
“We are pursuing neither very aggressive nor very subdued growth; we will not be off the mark by more than 100-200 basis points relative to the industry either way.”
“We hope to maintain a CASA ratio of around 40%.”
In short
- 01Deposit growth guidance raised to 11-12% from 9-11%, and advances growth guidance raised to 13-14% from 11-13%.
- 02Management later said it expects advances growth of 14-15% and deposit growth of about 12%.
- 03NIM expected to expand by about 5-7 basis points this quarter after the 25 bps repo rate increase.
- 04ECL provision totals Rs.2,500 crore so far, against an expected total impact of Rs.3,500 crore.
- 05Recurring ECL credit cost impact kept at 10-15 basis points.
- 06NSE listing gave a Rs.252 crore booked profit and a Rs.1,134 crore MTM gain; net profit grew 14.71% to Rs.3,462 crore.
- 07Capital adequacy is 16.21% and expected at about 17-17.5% by March-end; Rs.1,000-2,000 crore Tier 2 raise possible.
- 08One-time MTM of the HTM book under new valuation guidelines is named as an industry-wide risk.
Segments
16.39% advances growth came mainly from loans against FCNR(B) deposits, may not recur
Binod Kumar · MD & CEO · p. 7
16.39% advances growth came mainly from loans against FCNR(B) deposits, may not recur
“Advances growth of 16.39% came primarily from loans against FCNR(B) deposits, which may not recur next quarter.”
RAM: Retail grew 17.37%, agriculture 17.18%, MSME 19.06%
Binod Kumar · MD & CEO · p. 3
RAM: Retail grew 17.37%, agriculture 17.18%, MSME 19.06%
“All segments are growing evenly: retail grew by 17.37%, agriculture by 17.18% and MSME by 19.06%.”
Corporate: Corporate credit pipeline Rs.63,000 crore; Rs.30,000 crore sanctioned, yet to disburse
Binod Kumar · MD & CEO · p. 4
Corporate: Corporate credit pipeline Rs.63,000 crore; Rs.30,000 crore sanctioned, yet to disburse
“The corporate credit pipeline stands at Rs.63,000 crore. Of this, Rs.30,000 crore has been sanctioned and is yet to be disbursed, in-principle approval has been given for Rs.10,000 crore, and the remaining around Rs.23,000 crore is under discussion or at a preliminary stage.”
Digital: Digital business grew 18% year on year
Ashutosh Choudhury · Executive Director · p. 5
Digital: Digital business grew 18% year on year
“Along with these digital initiatives, digital business has grown by 18% year-on-year.”
Treasury: Treasury income expected to be muted going forward
Binod Kumar · MD & CEO · p. 6
Treasury: Treasury income expected to be muted going forward
“Treasury income will be muted going forward, and I do not expect very high profits from it.”
Demand
Housing loans: Competition high in all segments; many banks lend housing loans below 7%
Binod Kumar · MD & CEO · p. 16
Housing loans: Competition high in all segments; many banks lend housing loans below 7%
“In housing loans, many Banks are lending below 7%, so there is little scope to expect more than that.”
Corporate and MSME: WCDL book declined Rs.1,000-2,000 crore; no rise in drawdowns from crisis
Binod Kumar · MD & CEO · p. 17
Corporate and MSME: WCDL book declined Rs.1,000-2,000 crore; no rise in drawdowns from crisis
“Our WCDL book is almost stagnant; in fact, it has declined by Rs.1,000-2,000 crore.”
Drawdowns not seen rising because of Middle East crisis
Binod Kumar · MD & CEO · p. 17
Drawdowns not seen rising because of Middle East crisis
“So, I do not see drawdowns increasing because of the crisis.”
Corporate and MSME: Cash-credit book down Rs.1,000-2,000 crore; about Rs.10,000 crore of MSME limits undrawn
Binod Kumar · MD & CEO · p. 17
Corporate and MSME: Cash-credit book down Rs.1,000-2,000 crore; about Rs.10,000 crore of MSME limits undrawn
“The cash-credit book has also declined by Rs.1,000-2,000 crore, and MSME also around Rs.10,000 crore remains undrawn.”
Margins and costs
Cost-to-income 44.59% including NSE gains, 39.30% excluding them
Binod Kumar · MD & CEO · p. 3
Cost-to-income 44.59% including NSE gains, 39.30% excluding them
“The cost-to-income ratio was 44.59% including the NSE gains and it was 39.30% excluding NSE gains.”
MCLR-linked book 43.19% of advances; external benchmark-linked 49.65%
Binod Kumar · MD & CEO · p. 4
MCLR-linked book 43.19% of advances; external benchmark-linked 49.65%
“The MCLR-linked book constitutes 43.19% of advances, and the external benchmark-linked book constitutes 49.65%.”
Gold loans: Gold-loan yield 8.85%, same in June and September
Binod Kumar · MD & CEO · p. 16
Gold loans: Gold-loan yield 8.85%, same in June and September
“It is 8.85%, as it was the same in June and now.”
Corporate: Corporate yield rose to 8.49% from 8.36% in June
Binod Kumar · MD & CEO · p. 18
Corporate: Corporate yield rose to 8.49% from 8.36% in June
“So, it has improved from 8.36% to 8.49%.”
Cost of deposits up 9 bps sequentially
Binod Kumar · MD & CEO · p. 4
Cost of deposits up 9 bps sequentially
“The cost of deposits increased by 9 basis points sequentially.”
Debt and working capital
CASA ratio dipped sequentially due to FCNR(B); up to 39.36% from 38.87% year on year
Binod Kumar · MD & CEO · p. 3
CASA ratio dipped sequentially due to FCNR(B); up to 39.36% from 38.87% year on year
“The CASA ratio declined slightly on a sequential basis, mainly because of FCNR(B) deposits, but on a year-on-year basis it improved from 38.87% to 39.36%.”
Bulk deposits fell to Rs.1.52 lakh crore from Rs.1.62 lakh crore
₹1,52,000CrBinod Kumar · MD & CEO · p. 3
Bulk deposits fell to Rs.1.52 lakh crore from Rs.1.62 lakh crore
₹1,52,000Cr“Bulk deposits declined from Rs.1.62 lakh crore last quarter to Rs.1.52 lakh crore this quarter, a reduction of around Rs.10,000 crore.”
Capital adequacy 16.21%: CET1 15.18%, Tier 2 1.03%
Binod Kumar · MD & CEO · p. 4
Capital adequacy 16.21%: CET1 15.18%, Tier 2 1.03%
“The capital adequacy ratio is 16.21%, of which CET1 is 15.18% and Tier 2 is 1.03%.”
Raised FCNR(B) deposits of USD2.3 billion, about Rs.21,000 crore
Binod Kumar · MD & CEO · p. 8
Raised FCNR(B) deposits of USD2.3 billion, about Rs.21,000 crore
“We raised FCNR(B) deposits of USD2.3 billion, or around Rs.21,000 crore.”
Retail term deposit target cut to about Rs.5,000-6,000 crore this quarter
Binod Kumar · MD & CEO · p. 8
Retail term deposit target cut to about Rs.5,000-6,000 crore this quarter
“Our retail term deposit growth is normally around Rs.10,000-11,000 crore a quarter, but this quarter we targeted only around Rs.5,000-6,000 crore.”
Fund raising
Approval to raise up to Rs.5,000 crore via infrastructure bonds
Binod Kumar · MD & CEO · p. 9
Approval to raise up to Rs.5,000 crore via infrastructure bonds
“We have taken approval to raise up to Rs.5,000 crore through Infrastructure Bonds, and we may go for that.”
No MTNs raised; only USD400 million raised through OFCB
Binod Kumar · MD & CEO · p. 13
No MTNs raised; only USD400 million raised through OFCB
“We have not raised MTNs, as they are very costly. We have raised only USD400 million through OFCB.”
May raise Rs.1,000-2,000 crore Tier 2 capital as Rs.1,000 crore bonds mature in January
Binod Kumar · MD & CEO · p. 15
May raise Rs.1,000-2,000 crore Tier 2 capital as Rs.1,000 crore bonds mature in January
“In January, Tier 2 Bonds of Rs.1,000 crore will mature, so we may raise Rs.1,000-2,000 crore of Tier 2 capital, depending on market conditions.”
AT1 Rs.2,000 crore and Tier 2 Rs.3,000 crore retired last year; no capital raised this year
Binod Kumar · MD & CEO · p. 15
AT1 Rs.2,000 crore and Tier 2 Rs.3,000 crore retired last year; no capital raised this year
“Last year, AT1 Bonds of Rs.2,000 crore and Tier 2 Bonds of Rs.3,000 crore was retired, and we have not raised capital again this year.”
Exploring refinance if cheaper than CD and bulk deposit rates
Binod Kumar · MD & CEO · p. 9
Exploring refinance if cheaper than CD and bulk deposit rates
“We are also exploring refinance opportunities; if we get a rate better than CD and bulk deposit rates, we may use them.”
Acquisitions and new business
Digital: Launched TARA, an AI conversational banking assistant, in Q2
Ashutosh Choudhury · Executive Director · p. 5
Digital: Launched TARA, an AI conversational banking assistant, in Q2
“In Q2, we launched AI conversational banking, which we have named TARA, or Trusted AI Relationship Assistant.”
Digital: Introduced Smart Wealth, an AI personal finance tool; second phase to add insights
Ashutosh Choudhury · Executive Director · p. 5
Digital: Introduced Smart Wealth, an AI personal finance tool; second phase to add insights
“We have also introduced Smart Wealth, an AI-powered personal finance management tool.”
One-offs
ECL provision of Rs.1,500 crore this quarter; total ECL provision Rs.2,500 crore
Binod Kumar · MD & CEO · Q&A · p. 5
ECL provision of Rs.1,500 crore this quarter; total ECL provision Rs.2,500 crore
“We made an ECL provision of Rs.1,500 crore this quarter, and Rs.1,000 crore in the previous quarter, taking the total ECL provision to Rs.2,500 crore.”
NSE listing: Rs.252 crore profit booked, Rs.1,134 crore MTM gain recognised
Binod Kumar · MD & CEO · p. 3
NSE listing: Rs.252 crore profit booked, Rs.1,134 crore MTM gain recognised
“On account of that, we booked a profit of Rs.252 crore, and a gain of Rs.1,134 crore has been recognized through Mark-To-Market (MTM).”
Treasury: MTM loss of about Rs.11 crore in P&L apart from NSE
Binod Kumar · MD & CEO · p. 5
Treasury: MTM loss of about Rs.11 crore in P&L apart from NSE
“Other than NSE, there is a Mark-To-Market (MTM) loss of around Rs.11 crore in the P&L.”
Other income includes Rs.271 crore interest on income tax refund
Binod Kumar · MD & CEO · p. 6
Other income includes Rs.271 crore interest on income tax refund
“Yes, Rs.271 crore of interest on the income tax refund.”
One-time capital impact: provisions earlier counted in Tier 2 no longer included
Binod Kumar · MD & CEO · p. 14
One-time capital impact: provisions earlier counted in Tier 2 no longer included
“It is a one-time impact. We have been proactively making provisions for ECL and other items, and we had included part of them in Tier 2 capital.”
Risks
Total ECL impact expected at Rs.3,500 crore
Binod Kumar · MD & CEO · p. 5
Total ECL impact expected at Rs.3,500 crore
“We expect the total impact to be Rs.3,500 crore, so we are making the provision while times are good.”
Credit cost at 0.22%, down 1 bp quarter on quarter
Binod Kumar · MD & CEO · p. 4
Credit cost at 0.22%, down 1 bp quarter on quarter
“Credit cost stood at 0.22%, which was declined by 1 basis point on Q-o-Q basis.”
Gross NPA 1.61%, net NPA 0.14%, slippage ratio 0.69%
Binod Kumar · MD & CEO · p. 4
Gross NPA 1.61%, net NPA 0.14%, slippage ratio 0.69%
“Gross NPA declined to 1.61%, and net NPA stood at 0.14%. The slippage ratio was 0.69%, a decline of 8 basis points from the previous quarter.”
SMA book fell to 4.19% (Rs.29,748 crore) from 7.35% a year ago
Binod Kumar · MD & CEO · p. 4
SMA book fell to 4.19% (Rs.29,748 crore) from 7.35% a year ago
“The SMA book declined from 7.35% a year ago to 4.19%, or Rs.29,748 crore in absolute terms.”
SMA-2 accounts above Rs.25 crore about Rs.400 crore; no major stress seen
Binod Kumar · MD & CEO · p. 4
SMA-2 accounts above Rs.25 crore about Rs.400 crore; no major stress seen
“SMA-2 accounts above Rs.25 crore amount to only around Rs.400 crore. We are not seeing any major stress in any account.”
Other
Net profit grew 14.71% to Rs.3,462 crore
Binod Kumar · MD & CEO · p. 3
Net profit grew 14.71% to Rs.3,462 crore
“Net profit grew by 14.71% to Rs.3,462 crore.”
Operating profit grew 46.58%, above Rs.7,000 crore; 18% excluding NSE
Binod Kumar · MD & CEO · p. 3
Operating profit grew 46.58%, above Rs.7,000 crore; 18% excluding NSE
“Operating profit grew by 46.58% and crossed Rs.7,000 crore; excluding the NSE contribution, it grew by 18%.”
Net interest income grew 17.83%
Binod Kumar · MD & CEO · p. 3
Net interest income grew 17.83%
“Net interest income grew by 17.83%.”
Total business grew 14.22%, deposits 12.50%, CASA 13.77%
Binod Kumar · MD & CEO · p. 3
Total business grew 14.22%, deposits 12.50%, CASA 13.77%
“Total business grew by 14.22%, and deposits grew by 12.50%. CASA grew well, by 13.77%.”
ROA flat at 1.31%; ROE 19.66%, up 18 bps
Binod Kumar · MD & CEO · p. 3
ROA flat at 1.31%; ROE 19.66%, up 18 bps
“Return on assets was flat at 1.31% sequentially. Return on equity was 19.66%, an expansion of 18 basis points.”
Sources
- Earnings call transcript, Q2 FY27 Filed 21 Oct 2026 · 18 pages
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.