Earnings call transcript: Indian Bank lifts Q2 FY2027 outlook on growth and margins
Indian Bank reported a robust quarter in Q2 FY2027, with its net profit surging 14.71% to INR 3,462 crore and operating profit rising 46.58% to over INR 7,000 crore. The growth was driven by one-time gains from NSE-related activity, with net interest income increasing by 17.83%. Management expects margin expansion in the next quarter following a recent repo-rate hike.
Total business grew 14.22% year-over-year, supported by a 12.50% rise in deposits and 16.39% growth in advances. Net interest margin improved by 8 basis points, while gross NPA remained low at 1.61% and net NPA at 0.14%. The bank's asset quality stayed strong, with a healthy mix of retail, agriculture, and MSME advances. Management raised full-year growth guidance for deposits and advances, with deposit growth now expected at 11%-12% and advances at 13%-14%.
The bank anticipates net interest margin to expand by 5-6 basis points in Q3, aided by the 25 basis point repo-rate increase.
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