Indian Bank Q2 results: PAT rises 15% to ₹3,462 crore, profit margin falls; plans to raise ₹7,000 crore via bonds

Indian Bank announced its July to September quarter results for the financial year 2026-27 on Thursday, October 15, as investors analyse the quarterly fine print while the company’s board approves plans to raise around ₹7,000 crore via several bond issues in the upcoming period.

Although the PSU bank posted growth in overall net profit after tax (PAT) and net interest income (NII) in the September quarter of FY27, an 81 basis point decline in the company’s profit margins impacted the overall sentiment of investors after the earnings release.

Indian Bank shares declined 3.8% to touch an intraday low of ₹816.80 apiece on Thursday’s market after the company’s Q2 results update, in comparison to ₹849.45 apiece at the previous equity market close.

NSE filings showed that the institutional lender posted a nearly 15% year-on-year (YoY) rise in its standalone net profits to ₹3,462 crore in the second quarter of FY27, compared to ₹3,018 crore in the same period a year earlier.

The bank’s interest income advanced 15.1% YoY to ₹19,106 crore in the September quarter, from ₹16,590 crore in the corresponding quarter of the previous financial year.

Despite the rise in Q2 profits, the financials showed that the bank’s net profit margins contracted by 81 basis points to 15.01% in Q2 FY27, from 15.82% in the same period a year earlier.

Asset quality review

The Q2 filings also showed that Indian Bank’s gross non-performing assets (NPAs) declined by 99 basis points to 1.61% in the September quarter results, from 2.6% in the same quarter of the previous financial year.

The declining NPA or bad loans showed an overall improvement in the PSU lender’s asset quality; however, the provisions for the same remained nearly at the same level as of the end of the second quarter of FY27.

Indian Bank reduced its provisions for bad loans marginally by 3.1% to ₹370 crore in the period under review, from ₹382.21 crore in the same period a year earlier.

Plans to raise ₹7,000 crore via bonds

Indian Bank’s board approved the lender’s plan to raise up to ₹5,000 crore via long-term infrastructure bonds through one or more tranches as the company aims to finance or refinance infrastructure and affordable housing in compliance with applicable RBI guidelines.

The board also approved the fundraising plans to raise up to ₹2,000 crore via AT 1 or Tier 2 Bonds in one or more tranches during the current or subsequent financial years based on the requirement.

How have Indian Bank shares performed?

NSE data showed that Indian Bank shares have delivered 404% returns to investors in the last five years, over 98% gains on their investment in the last three years, and 7% returns in the past one-year period.

On a year-to-date (YTD) basis, the stock is down 0.2% and has declined 0.7% in the past one-month period. The exchange data showed that Indian Bank shares have risen 2.7% in the last five sessions.

Shares of Indian Bank surged to their 52-week high of ₹1,000.90 apiece on April 15, 2026, while the 52-week low was at ₹756.50 apiece on October 17, 2025.

The company’s market capitalisation (m-cap) was at more than ₹1.13 lakh crore as of the trading session on Thursday, October 15, 2026.