Indian Bank Q2 FY27: PAT ₹3,273 Cr & Rev ₹68,500 Cr

Investor Takeaways

Net profit rose 10.09% YoY to Rs.3,273 crore in Q1 FY27

Gross NPA declined 115 bps YoY to 1.86%

CASA ratio improved 76 bps YoY to 39.73%

Cost-to-income ratio declined to 44.80%

Floating provision of Rs.1,000 crore added for ECL

ECL impact expected at Rs.3,000-3,500 crore

FCNR(B) funding target of USD1.5-2.0 billion by year-end

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹68,500 Cr	N/A
Net Profit	₹3,273 Cr	+10.09%
EBITDA	Not available	N/A
EPS	Not available	N/A
OPM	Not available	N/A

What Changed

Indian Bank reported Q1 FY27 net profit of Rs.3,273 crore, reflecting a 10.09% year-on-year increase. The growth was supported by 13.40% deposit expansion and 13.89% advance growth. Gross NPA improved to 1.86%, down 115 basis points from the previous year, indicating enhanced asset quality. The CASA ratio increased to 39.73%, with domestic CASA showing a 76 basis point improvement YoY. The cost-to-income ratio declined to 44.80%, reflecting better operational efficiency. A floating provision of Rs.1,000 crore was created for expected credit losses (ECL), with total ECL impact projected at Rs.3,000-3,500 crore. The bank also raised USD150 million in FCNR(B) funding as of July 2026, targeting a total of USD1.5-2.0 billion by year-end. Management guided for a cost-to-income ratio of 45% and expects gross NPA to reduce to 1.50-1.60% by fiscal year-end. Despite elevated SMA-2 at Rs.7,700 crore due to a single account, management anticipates normalization following DCCO extension. The bank remains cautious on MSME sector stress despite ECLGS disbursements of approximately Rs.5,000 crore.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Indian Bank (INDIANB)	9.64	Not available	Not available	1,10,531.86
HDFC Bank Limited (HDFCBANK)	15.5	14.3%	24.4%	11,81,607.38
ICICI Bank Limited (ICICIBANK)	15.47	Not available	Not available	8,92,242
State Bank of India (SBIN)	10.44	Not available	Not available	8,89,093.09

Indian Bank trades at a lower P/E multiple compared to HDFC Bank and ICICI Bank, suggesting potential relative valuation advantage. Its P/E of 9.64 is also below SBI’s 10.44, indicating possible undervaluation relative to peers on earnings basis.

Risks & Concerns

ECL impact expected at Rs.3,000-3,500 crore, which may affect near-term profitability

SMA-2 increased to Rs.7,700 crore due to one account, signaling potential stress in specific loan segments

Management remains watchful on MSME sector stress despite ECLGS disbursements

Quarterly Trend

[Not available in provided data. Quarterly trend data was not included in the context.]

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About Indian Bank (INDIANB)

Financial Services · Banks · Listed on NSE

Market Cap: ₹1,18,532.83 Cr P/E: 9.3 ROE: 15.7% ROCE: 45.8% Div Yield: 2.07%

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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