New Delhi, Oct. 26 -- IndusInd Bank shares rose over 2% on Monday, 26 October, after the private sector lender reported a return to profitability in the September quarter, supported by steady core income growth and an improvement in asset quality. However, a sequential contraction in net interest margin (NIM) and a cautious recovery outlook have left brokerages divided on the stock.

The bank reported a net profit of Rs.1,242 crore in Q2 FY27, compared with a net loss of Rs.437 crore in the year-ago quarter. Profit after tax rose 20% from Rs.1,037 crore in the June quarter.

Net interest income (NII), or the difference between interest earned and interest paid, increased 4% year-on-year to Rs.4,569 crore, although it declined 2% sequentia...