IndusInd Bank Q2 Results, October 23, 2026: ₹1,242 Crore Profit After Year-Ago Loss

IndusInd Bank is back to making real money. In its IndusInd Bank Q2 results for the September 2026 quarter, announced on October 23, 2026, the lender reported a consolidated net profit of ₹1,242 crore, against a net loss of ₹437 crore in the same quarter last year. The board approved the numbers at a meeting in Mumbai on Friday, according to the bank’s press release filed with NSE.

A year ago this bank was dealing with the fallout of a messy quarter. Now the conversation is about how fast profitability can rebuild, and Q2 gives us a few useful clues.

IndusInd Bank Q2 results: the headline numbers

All figures below are consolidated and compare Q2 FY27 (July to September 2026) with Q2 FY26, unless stated otherwise.

• Net profit: ₹1,242 crore, against a net loss of ₹437 crore. On a sequential basis, the bank says profit is up 51% from a “normalised” ₹824 crore in Q1 FY27.
• Net interest income (NII): ₹4,569 crore versus ₹4,409 crore, a rise of about 3.6%.
• Net interest margin (NIM): 3.23%, down from 3.32%.
• Fee and other income: ₹2,248 crore versus ₹1,651 crore, up roughly 36%.
• Operating expenses: ₹3,943 crore versus ₹4,013 crore, about 1.7% lower.
• Pre-provision operating profit (PPOP): ₹2,874 crore versus ₹2,047 crore, up about 40%.
• Provisions and contingencies (other than tax): ₹1,223 crore versus ₹2,631 crore, less than half the year-ago level.

Put simply, core lending income barely moved. The profit swing came from higher fee income, tighter costs and a much smaller provisioning bill.

Margins are still under pressure

Yield on assets slipped to 8.35% from 8.75% a year earlier, while cost of funds eased to 5.11% from 5.43%. Yields fell by 40 basis points and funding costs by 32, which is why the margin narrowed. That squeeze is something we’d keep watching, because NII growth of under 4% doesn’t sit comfortably next to loan growth of over 11%.

Balance sheet and asset quality

Advances stood at ₹3,63,104 crore on September 30, 2026, up about 11.4% from ₹3,25,881 crore a year earlier. Deposits rose about 10.1% to ₹4,28,832 crore from ₹3,89,600 crore. CASA deposits came in at ₹1,19,766 crore, or 27.93% of total deposits, with savings accounts making up ₹83,024 crore of that.

Asset quality was the cleaner part of the report. Gross NPA fell to 2.73% of gross advances from 3.25% at the end of June 2026, and net NPA eased to 0.83% from 0.95%. The provision coverage ratio was 70.19%, a touch lower than 71.81% a year ago.

Capital remains comfortable. Total capital adequacy under Basel III was 16.59% (17.10% a year earlier), with Tier 1 at 15.55%. The average liquidity coverage ratio for the quarter was 127%.

Half-year picture

For April to September 2026, net profit was ₹2,279 crore against just ₹167 crore in the first half of FY26. PPOP for the half year rose to ₹5,648 crore from ₹4,615 crore, while operating expenses fell to ₹7,641 crore from ₹8,243 crore.

The board also appointed Priyanka Sinha as an additional independent director for four years from October 23, 2026, subject to shareholder approval. MD and CEO Rajiv Anand said in the release that growth has strengthened and asset quality trends remain encouraging.

What it means for investors

The turnaround in profit is real, but it leans on lower provisions and fee income rather than a pick-up in core margins. If you track banks, the next couple of quarters will show whether NIM stabilises as cost of funds falls further. For a step-by-step way to read a bank’s numbers, see our guide on how to analyse quarterly results of a company, and compare this with J&K Bank’s Q2 results, where asset quality also improved.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.