Indian Bank lifts quarterly profit 15% to $364.3m

Net interest income climbed 18% year-on-year as lending growth supported the bank's performance.

Indian Bank has posted a 15% year-on-year (YoY) increase in net profit to $364.3m (INR3,460 crore) for the second quarter of the financial year ending 2027 (Q2 2027), supported by loan growth and expanding interest margins.

Profit after tax also rose 6% quarter-on-quarter.

Net interest income grew 18% YoY to $813m (INR7,720 crore), while the net interest margin widened by two basis points quarter-on-quarter to 3.31%.

Total revenue reached $1.23b (INR11,670 crore), up 29% YoY, boosted by non-interest income of $415.9m (INR3,950 crore) in Q2 2027.

Non-interest income included a $145.3m (INR1,380 crore) one-off gain from the revaluation and sale of a stake in the National Stock Exchange of India.

The bank utilised this gain to allocate $157.9m (INR1,500 crore) in additional provisions for expected credit loss requirements, bringing total accumulated transition provisions to $263.2m (INR2,500 crore).

A further $105.3m (INR1,000 crore) in residual provisions is anticipated.

Bank management maintained its full-year credit growth guidance at 13% to 14% and projects a margin expansion of five to six basis points in the third quarter following recent benchmark interest rate increases.

($1 = INR94.97)