IndusInd Bank Ltd LENDER SWINGS BACK TO PROFIT IN Q2

INDUSINDBK IndusInd Bank shares are likely to remain in focus on October 26 after the private sector lender returned to profitability in the second quarter of FY27. Several global brokerages reviewed the bank’s July–September performance, with most pointing to improving asset quality, stronger fee income and lower credit costs. However, continued pressure on net interest margins and uncertainty surrounding the pace of recovery remain key concerns. IndusInd Bank reported a post-tax net profit in the September quarter that was 20 percent. The bank’s core net interest income increased 4 percent year-on-year. However, it declined 2 percent sequentially compared with the previous quarter. Advances grew 11 percent quarter-on-quarter, while the net interest margin contracted by 0.34 percentage. Fee and other income registered strong growth, rising 36 percent. Consequently, net revenue increased 12.5 percent year-on-year. Pre-provision operating profit surged 40 percent. Operating expenses also declined to Rs 3,943 crore, providing additional support to profitability. The bank’s chief executive and managing director, Rajiv Anand, said the mobilisation of $3.51 billion in foreign currency non-resident bank deposits weighed on NIM during the quarter. Meanwhile, a senior bank official rejected suggestions that loans linked to more than Rs 16,000 crore in FCNR(B) deposits were the primary driver of advance growth. The official noted that wholesale banking advances increased 10 percent quarter-on-quarter, while retail advances grew 4 percent, even excluding the impact of loans associated with the diaspora.