Q2 FY27 call: net profit INR 5,532 crores, domestic NIM 2.74%, GNPA 2.55%
Transcript of the Q2 FY27 earnings call held on 16 October 2026 shared with the exchanges.
By ScoutQuest · · 3 min read
- Net Profit
- INR 5,532 crores, up 12.8% Y-o-Y
- NII
- INR 11,601 crores, up 10.8%
- Domestic NIM
- 2.74% from 2.64% sequentially
What this update is
The transcript of the Q2 FY27 earnings call held on 16 October 2026, covering the unaudited (reviewed) results for the quarter and half-year ended 30 September 2026. It carries the management's opening remarks on business growth, profitability, asset quality and the FY26-27 guidance.
Business growth
- Gross global business reached INR 31.18 lakh crores, up 11.9% Y-o-Y.
- Advances grew 14.7% Y-o-Y to INR 13.41 lakh crores, even after reducing IBPC exposure by INR 23,700 crores; excluding that, core advances grew 17.4%.
- Within the RAM portfolio: retail advances excluding IBPC up 16.3%, MSME up 19.8%, agriculture (priority sector) up 18.1% Y-o-Y.
- Global deposits reached INR 17.77 lakh crores, up 9.9% Y-o-Y; individual saving account balance grew 8.1% Y-o-Y.
- In the FCNR campaign the bank raised USD 2.7 billion against a target of USD 2.5 billion, and used it to shed high-cost bulk deposits and CDs. Credit-deposit ratio stood at 75.5%.
- Corporate credit: INR 4 lakh crores sanctioned in FY 2025-26; more than INR 2.5 lakh crores already sanctioned in the first half of this year; pipeline of INR 1.58 lakh crores.
Profitability
- Domestic NIM improved 10 basis points sequentially to 2.74% from 2.64%; global NIM rose to 2.58% from 2.5%.
- NII rose to INR 11,601 crores, up 10.8% Y-o-Y and 7.4% Q-o-Q, above the stated guidance of 7%.
- Operating profit was INR 7,532 crores; core operating profit, excluding recoveries from written-off accounts and treasury gains, grew 29.4% Y-o-Y and 8% Q-o-Q, and formed 79% of total operating profit against 64% in Q2 FY26.
- Fee-based income grew 16% Y-o-Y.
- Net profit was INR 5,532 crores, up 12.8% Y-o-Y.
- Return on assets 1.05%, return on equity 17.32%; tangible book value per share INR 111.94 against INR 95.92 a year earlier.
- Cost-to-income ratio improved to 50.45% from 51.20%.
Asset quality
- Gross NPA ratio declined to 2.55% from 3.45%; net NPA ratio to 0.25% from 0.36%.
- Provision coverage ratio at 97.32%, above the guidance of more than 96% for FY27.
- SMA-0, 1 and 2 combined at 2.50% of the loan book, which management described as an all-time low.
- Fresh slippages of INR 2,395 crores in Q2; slippage ratio at 0.77% against guidance of below 0.9% for FY27.
- Total recovery of INR 2,805 crores, which is 1.17 times the slippages.
- Management said it has not seen any material impact of geopolitical tensions on the bank's asset quality.
Guidance given by management
- The bank said it remains firmly on track to deliver its FY26-27 guidance.
- NIM: the positive margin trajectory is expected to strengthen further in the coming quarters.
- Slippage ratio: to remain below 0.9% in FY27 (currently 0.77%).
- Provision coverage ratio: more than 96% for FY27 (currently 97.32%).
- Both the gross NPA and net NPA targets for FY26-27 are reiterated as on track.
Expansion and digital
- Target of 250 branches this financial year; 162 already opened, of which 119 are in the Southern and Western regions.
- Continuing investment in technology, process automation and data analytics to improve service delivery and productivity.
What a retail investor can track
The transcript sets out the reported numbers alongside the levels management has said it is working to. The margin trajectory it expects to strengthen, the slippage ratio against the below 0.9% guidance and the PCR against the more than 96% guidance are the operating markers that can be compared with the coming quarters' disclosures.
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More numbers
- Net profit, Q2 FY27INR 5,532 crores
- Net interest income, Q2 FY27INR 11,601 crores
- Global advancesINR 13.41 lakh crores
- Domestic NIM, Q2 FY272.74%
- Gross NPA ratio as on 30 September 20262.55%
- Net NPA ratio as on 30 September 20260.25%
- Fresh slippages, Q2 FY27INR 2,395 crores
- Total recovery, Q2 FY27INR 2,805 crores
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