Sobha's profit fell by 54.5% in the second quarter despite record sales in the first half of the year

The Bangalore-based developer, Sobha Limited, reported a significant drop in net consolidated profit by 54.5% in the September quarter. The profit amounted to ₹32.96 crore, according to results presented by the company on the Bombay Stock Exchange on Monday.

Concurrently, revenue from operations decreased by 31.3% year-on-year, reaching ₹967.06 crore compared to ₹1,407.66 crore the previous year. Looking at sequential changes, both profit after tax and revenue from operations decreased by 35.2% and 24.3%, respectively.

The company's EBITDA in Q2FY27 was ₹68.73 crore, which is 32.4% less than ₹101.64 crore in the same period last year. Nevertheless, the developer demonstrated strong sales performance, noting a growth of 47.2% in the first half of the financial year, and collections increased by 4.8% over the same period.

Jagadish Nangneneni, Managing Director of Sobha Limited, commented on the results, stating that the performance in the first half of FY27, marked by record sales, reflects consistent customer trust, the strength of the SOBHA brand, and the successful execution of the business strategy. He added that the second half of the year will be built on this momentum, supported by planned project launches, a strong development portfolio, and sustained demand for quality housing.

In Q2FY27, Sobha reported an average realization price of ₹15,522 per square foot. The company also specified that in the first half of FY27, projects totaling approximately 7.92 million square feet (msf) were launched, with an estimated sales potential of nearly ₹11,200 crore.

Nangneneni emphasized that the company's focus will remain on improving execution efficiency, maintaining financial discipline, and utilizing a unique reverse integration model to ensure superior quality and reliability. He expressed confidence in the company's ability to capitalize on emerging opportunities and create long-term value for customers and stakeholders.

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business-standard.comOctober 19, 09:54

Union Bank's second-quarter profit rose by 31% to 5,781 crore rupees amid growth in net interest income

The consolidated net profit of Union Bank of India increased by 30.6% year-on-year, reaching 5,781 crore rupees in the quarter ending September 30, 2026. This figure was up from 4,425.95 crore rupees and was driven by an increase in net interest income and a sharp reduction in provisions.

Net interest income, calculated as interest earned minus interest paid, grew by 20.2% to 10,765.32 crore rupees, compared to 8,957.92 crore rupees. Meanwhile, interest income rose by 8.3% to 28,377.73 crore rupees, while interest expenses increased more slowly—by only 2.1%—to 17,612.41 crore rupees.

Sharp reduction in provisions by almost 50 percent

Operating profit before provisions and unexpected expenses rose by 19.1%, amounting to 8,150.96 crore rupees compared to 6,844.79 crore rupees. Provisions and unexpected expenses, excluding taxes, decreased by 49.6%, falling from 1,392.28 crore rupees to 702.19 crore rupees. However, provisions specifically set aside for non-performing assets increased by 15%, reaching 596.48 crore rupees.

Profit before tax increased by 36.6%, totaling 7,448.77 crore rupees. Tax expenses grew by 60.4% to 1,878.37 crore rupees. The bank's share of profit from affiliates increased by 45.6% to 210.60 crore rupees. Basic and diluted earnings per share rose to 7.57 rupees from 5.80 rupees.

Total income increased by 5.4% to 33,471.29 crore rupees, while other income decreased by 8.2% to 5,093.56 crore rupees. Total expenses, excluding provisions and unexpected expenses, rose by 1.6% to 25,320.33 crore rupees. Union Bank's operating margin improved to 24.35% from 21.55%, and net profit margin rose to 17.27% from 13.94%.

Credit growth outpaces deposit growth

Consolidated loans grew by 19.4% year-on-year to 1,136,280.44 crore rupees as of September 30, 2026, compared to 951,795.76 crore rupees. Deposits increased by 6.9%, reaching 1,322,309.68 crore rupees from 1,237,049.70 crore rupees. The consolidated capital adequacy ratio improved by 91 basis points, standing at 18.61% compared to 17.70%. The Tier 1 capital ratio increased by 171 basis points to 16.72%. Net capital grew by 14.6% to 134,105.53 crore rupees from 117,044.78 crore rupees.

Corporate banking results nearly doubled

Income from corporate and wholesale banking services increased by 11.3%, reaching 12,451.29 crore rupees. The result of this segment grew by 98.2%, amounting to 2,849.34 crore rupees. Retail banking income rose by 9.7% to 12,532.78 crore rupees, and the segment's result increased by 56.2% to 2,514.73 crore rupees. Income from the trading division decreased by 9.7% to 6,886.53 crore rupees, and the segment's result fell by 20.4% to 1,299.55 crore rupees.

For the first half of the fiscal year 27, consolidated net profit increased by 29%, reaching 11,422.52 crore rupees compared to 8,853.90 crore rupees.

business-standard.comOctober 17, 17:01

IDBI Bank's second-quarter profit fell by 39% to 2,205 crore rupees due to one-time income from NSDL share sale

IDBI Bank reported on Saturday a 39% year-on-year decline in net profit, reaching 2,205 crore rupees in the second quarter of fiscal year 27. This figure contrasts with the 3,627 crore rupees recorded a year earlier. The reason for this drop is that the comparison base included a one-time income of 1,699 crore rupees received from the sale of investments in NSDL. Excluding this one-time income, net profit increased by 14% to 1,929 crore rupees. Compared to the first quarter of fiscal year 27, net profit grew by 4% to 2,115 crore rupees.

Non-interest income decreased by 46% year-on-year to 1,353 crore rupees compared to 2,489 crore rupees, which included income from NSDL. However, quarter-on-quarter, non-interest income showed an increase of 31%, rising from 1,032 crore rupees. Operating profit decreased by 18% year-on-year, falling to 2,893 crore rupees from 3,523 crore rupees in the second quarter of fiscal year 26. Without accounting for the one-time income, operating profit rose by 59%, reaching 1,824 crore rupees. Quarter-on-quarter, operating profit increased by 33% compared to 2,168 crore rupees in the first quarter of fiscal year 27.

Net Interest Income (NII) increased by 29% year-on-year, reaching 4,228 crore rupees in the second quarter of fiscal year 27, compared to 3,285 crore rupees a year earlier. Quarter-on-quarter, NII grew by 21% relative to 3,486 crore rupees in the previous quarter. Interest income increased by 20% year-on-year, amounting to 8,512 crore rupees versus 7,104 crore rupees, and also by 13% compared to 7,541 crore rupees in the first quarter of fiscal year 27. Net Interest Margin (NIM) improved to 4.11% in the second quarter of fiscal year 27 from 3.71% a year ago and 3.61% in the previous quarter. Deposit costs decreased by 14 basis points year-on-year to 4.55%, while fund costs decreased by 17 basis points to 4.65%.

The cost-to-income ratio was 48.17%, which is 385 basis points lower than the 52.02% in the first quarter of fiscal year 27, but higher than 38.99% a year ago when income was boosted by income from NSDL. Return on Assets (ROA) stood at 1.83% compared to 3.55% a year ago and 1.89% in the previous quarter. Excluding one-time income, the quarterly ROA a year ago was 1.89%.

Regarding asset quality, the Gross Non-Performing Assets (GNPA) ratio improved to 2.12% as of September 30, 2026, down from 2.30% in June 2026 and 2.65% a year ago. The Net NPA ratio was 0.17% compared to 0.16% in the previous quarter and 0.21% a year ago. The provisioning coverage ratio, including technical write-offs, reached 99.24% against 99.31% in June 2026 and 99.26% a year ago.

In terms of business, the total volume grew by 18% year-on-year to 6.27 trillion rupees and by 7% quarter-on-quarter. Total deposits increased by 17% to 3.56 trillion rupees, and net loans grew by 18% to 2.72 trillion rupees. The structure of corporate and retail loans accounted for 31:69 in total volume. CASA deposits grew by 12% year-on-year to 1.56 trillion rupees, but the CASA ratio decreased by 197 basis points to 43.82% from 45.79% a year ago. It improved by 18 basis points compared to 43.64% in June. The loan-to-deposit ratio was 76.34%, lower than 79.50% in the previous quarter and 75.88% a year ago.

The bank's capital adequacy ratio stood at 27.10% at the end of September 2026, compared to 25.39% a year ago and 26.92% in June. The Common Equity Tier-I ratio improved to 26.55% from 23.79% a year ago. Net capital increased by 18% to 61,164 crore rupees.

business-standard.comOctober 15, 16:43

Indian Bank's second-quarter profit rose 14% to ₹3,540 crore amid asset quality improvement

Indian Bank, a state-owned lender based in Chennai, reported a 14% rise in consolidated net profit for the second quarter, reaching ₹3,540 crore. This figure is higher than the ₹3,107.97 crore recorded in the quarter from July to September of the 2026 financial year.

The bank's total consolidated income for the reporting period amounted to ₹23,335.98 crore, which is 21% more than the ₹19,271.09 crore declared in the quarter ending September 30, 2025. On a standalone basis, net profit for the quarter increased by 15% to ₹3,462 crore.

Binod Kumar, Managing Director and CEO of Indian Bank, noted that the bank's overall business volume grew by 14.22%, deposits increased by 12.5%, and CASA grew by 13.77%. He emphasized that such growth is a positive development during difficult times when everyone faces challenges.

The bank's asset quality strengthened: Gross Non-Performing Assets (GNPA) decreased by 99 basis points year-over-year (Y-o-Y) to 1.61% as of September 2026, compared to 2.60% in September 2025. Net Non-Performing Assets (NNPA) reduced by 2 basis points to 0.14% in September 2026, down from 0.16% in September 2025. The bank's gross loans grew by 16.39% year-over-year to ₹721,982 crore in September 2026, compared to ₹620,324 crore the previous year.

The Provision Coverage Ratio (PCR, including TWO) reached 98.22% during the quarter. The slippage ratio was also controlled at 0.69%, which is better than 0.79% last year. The capital adequacy ratio stood at 16.21%.

Total deposits increased by 12.50% year-over-year to ₹874,036 crore in the second quarter of the 2027 financial year, compared to ₹776,946 crore the previous year. Current, savings, and CASA deposits grew by 27.48%, 11.55%, and 13.77% year-over-year, respectively.

Kumar added that despite expectations of a decline in NIM due to FCNR, NIM expanded: by one basis point domestically, by two basis points globally, and by eight basis points internationally. Similarly, CASA, which was expected to decrease, showed growth.

Loans in the RAM segment (Retail, Agriculture, and MSME) grew by 17.74% year-over-year to ₹442,302 crore as of September 2026, compared to ₹375,660 crore in September 2025. The share of RAM in gross domestic loans was 67.04%. Retail, agricultural, and MSME loans grew by 17.37%, 17.18%, and 19.06% year-over-year, respectively. Housing loans (including mortgages) grew by 12.33% year-over-year in September 2026.

The bank also reported strengthening digitalization, focusing on artificial intelligence. Kumar stated that about 96% of transactions are now digital, and the share of digital business grew from 15% to 19.67% of the total business volume. Furthermore, a conversational AI was recently launched, allowing operations to be conducted directly through dialogue. Business of ₹145,344 crore was received through digital channels in the first half of the 2027 financial year. The number of mobile banking users increased by 26% year-over-year, reaching 26.6 million.