CHENNAI: Indian Bank on Thursday recorded a 15% surge in net profit to Rs 3,462 crore for the Q2 ended September 30, reflecting improved operational efficiency and disciplined cost management apart from net interest margins being steady.

Announcing the results at a press meet here on Thursday, the Bank's MD-CEO Binod Kumar started by stating that the resilient Indian economy has seen its GDP going up beyond the projected 7% and the trade gap has been narrowing too.

Indian Bank too has seen its total business growing 14% on a y-o-y to Rs 15,96,018 crore, indicative of the broad-based momentum across all the segments.

The gross advances grew by 16.39% YoY, led by strong traction in retail, agriculture and MSME portfolios, he said adding deposits too has gone up substantially by 12.50% aided by a healthy CASA ratio of 39.36%.

The Chennai-based bank posted a net profit of Rs 3,018 crore in the same period of the previous fiscal. Its total income increased to Rs 23,059 crore in the Q2 from Rs 19,077 crore a year ago, it said in a regulatory filing.
Kumar said the recoveries had exceeded slippages and the bank was scaling up its AI focus.

He also spoke about the uptick in digital transactions at 96% while UPI transactions too had jumped, as 4 crore transactions are done daily.
The bank has 6,017 branches across the country and it will continue to expand further.

The bank's interest income rose to Rs 19,106 crore in the September quarter of FY27 from Rs 16,590 crore in the year-ago period.
In terms of asset quality, gross non-performing assets (NPAs) of the bank moderated to 1.61% of gross advances at the end of September 2026 compared to 2.6% a year ago.

Similarly, net NPAs or bad loans came down to 0.14% at the end of September 2026 compared to 0.16% at the end of September 2025.