Indian Bank Q2FY27: consol PAT +13.9% YoY to ₹3,541 Cr as provisions triple on NPA cleanup

Indian Bank's consolidated (primary) net profit for Q2 FY27 rose 13.9% YoY and 5.5% QoQ to ₹3,540.71 Cr, on consolidated total income of ₹23,335.98 Cr (interest earned ₹19,148.99 Cr, +15.2% YoY, +5.8% QoQ). Standalone PAT was ₹3,462.24 Cr, +14.7% YoY — within a percentage point of the consolidated growth rate, so the two bases tell the same story. Consolidated basic EPS was ₹26.29 against ₹23.07 a year ago and ₹24.92 last quarter.

The real story sits above the provisions line: consolidated pre-provision operating profit jumped 45.6% YoY and 26.7% QoQ to ₹7,079.62 Cr, lifting the operating margin (op. profit/total income) to 30.3% from 25.2% a year ago. But provisions and contingencies nearly tripled YoY (+202%, to ₹2,231.26 Cr from ₹738.51 Cr) and rose 87% QoQ, so net-profit growth (13.9% YoY) trailed both revenue and operating-profit growth by a wide margin — net margin compressed to 15.17% from 16.13% a year ago even as the operating margin expanded. The provisioning step-up came alongside a genuine asset-quality improvement: standalone gross NPAs fell to 1.61% from 2.60% a year ago and 1.86% last quarter, with net NPAs down to 0.14% from 0.16% YoY, suggesting the bank front-loaded provisioning rather than absorbing fresh stress.

The stock went into the print at ₹831.25, down 0.7% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.

No Indian Bank-specific consensus estimate could be sourced; sector-wide, Emkay Research had forecast roughly 25% YoY net-profit growth for Indian banks this quarter, a bar this print (13.9% consolidated, 14.7% standalone) falls short of — though without a company-specific number this is read as unknown rather than a confirmed miss. Against management's own July guidance — NIM toward the upper end of 3.15-3.25%, credit cost within 1%, and GNPA of 1.50-1.60% — the filing doesn't disclose NIM directly, but GNPA at 1.61% is essentially at, marginally above, the guided band, consistent with the confident tone from the prior concall. Capital adequacy slipped to 16.21% from 17.58% QoQ (CET1 15.18% from 16.51%) as the balance sheet grew — total business reached ₹15.96 lakh crore per the Oct 1 business update — and the same board meeting approved raising up to ₹7,000 Cr (₹5,000 Cr long-term infrastructure bonds plus ₹2,000 Cr AT1/Tier-2 capital), directly addressing that CAR dip. No separate management press release with forward commentary accompanied this filing.