Shares of Indian Bank Ltd. slipped 3.2% to ₹831.2 on the NSE after the bank’s Q2 earnings. The drop came despite a 14.7% YoY rise in standalone net profit to ₹3,462 crore, and net interest income leaping 17.8% to ₹7,719 crore from ₹6,551 crore a year earlier.
The bank’s operating profit jumped to ₹7,090 crore from ₹4,837 crore in the year‑ago quarter, while total business grew 14.2% YoY to ₹15.96 lakh crore. Advances expanded 16.6% year‑on‑year to ₹7.23 lakh crore, and deposits rose 12.4% to ₹8.73 lakh crore. Other income surged to ₹3,953 crore, buoyed by ₹1,386.67 crore from National Stock Exchange share listings.
Asset quality showed a tilt to the upside: gross NPA fell to 1.61% from 1.86%, and net NPAs eased to 0.14% from 0.15%. Yet provisions climbed to ₹2,222 crore, up from ₹1,196 crore in the previous quarter, with ₹370 crore earmarked for NPAs.
In a separate board resolution, Indian Bank approved a fundraising plan of up to ₹7,000 crore via non‑equity instruments, including ₹5,000 crore of long‑term infrastructure bonds and ₹2,000 crore of Basel‑III compliant Additional Tier 1 and Tier 2 bonds. The tranches will be issued in the current or subsequent fiscal years.
Analysts note the sector’s collective dip, yet Indian Bank’s year‑to‑date stock performance remains positive. The next watchpoint is the April‑FY27 earnings, where management is expected to reaffirm asset‑quality gains and discuss the impact of the new bond issuances on leverage ratios.