IndusInd Bank Q2 results: Posts net loss due to higher provisions, NII drops 17.5% YoY

IndusInd Bank reported a net loss of 436.8 crores in the second quarter of the financial year 2025-26. Last year, the bank posted a net profit of Rs 1,331 crore in Q2 FY25. Rajiv Anand, the MD and CEO of IndusInd Bank, said in a statement that the loss in the quarter is a result of accelerated write-offs as well as increased provisions on microfinance as a prudent measure. 

IndusInd Bank reported a 17.5 per cent YoY Net Interest Income decline in the quarter. The bank’s NII in Q2 FY26 came down to Rs 4,409 crore from Rs 5,347 crore in Q2 FY25.

Furthermore, IndusInd Bank’s margins also squeezed in the quarter. The private sector bank’s margin in Q2 FY26 stood at 3.32 per cent, compared to 4.08 per cent in the same quarter of last fiscal year. 

The bank found itself in the midst of a crisis earlier this year as governance and accounting lapses surfaced, leading to the exit of its former CEO, Sumant Kathpalia and deputy Arun Khurana.

The bank’s asset quality remained largely stable despite the challenging environment. Gross non-performing assets (GNPA) ratio stood at 3.60 percent as of September 30, 2025, compared with 3.64 percent at the end of June 2025, while net NPA (NNPA) improved to 1.04 percent from 1.12 percent. Provision coverage ratio (PCR) rose to 71.81 percent from 70.13 percent in the previous quarter.

Total loan-related provisions stood at Rs 10,443 crore, representing 3.2 percent of the loan book.

Total deposits fell to Rs 3.90 lakh crore from Rs 4.12 lakh crore a year earlier, while advances declined to Rs 3.26 lakh crore from Rs 3.57 lakh crore. The share of low-cost current and savings account (CASA) deposits stood at 31 percent, with current account deposits at Rs 31,916 crore and savings deposits at Rs 87,854 crore.

The balance sheet size contracted to Rs 5.27 lakh crore from Rs 5.43 lakh crore a year ago.

Fee and other income fell 24.4 percent to Rs 1,651 crore from Rs 2,185 crore in the year-ago quarter. The pre-provision operating profit (PPOP) dropped 43 percent to Rs 2,047 crore from Rs 3,600 crore.

As of September 30, 2025, IndusInd Bank had 3,116 branches and banking outlets, along with 3,054 ATMs across India, serving approximately 42 million customers.

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IndusInd Bank Q1 profit drops 72%

Private sector lender Indusind Bank on Monday reported a 72 per cent drop in its consolidated net profit for the June quarter at Rs 604 crore.

Indusind Bank, which is reeling under a slew of issues stemming from alleged irregularities of the management in recognising bad loans and trading reverses, had reported a net profit of Rs 2,171 crore in the year-ago period.

It had reported a loss of Rs 2,329 crore in the preceding March quarter.

Total income dropped to Rs 14,420.80 crore in the April-June quarter of FY26 compared to Rs 14,988.38 crore in the year-ago period.

The lender's core net interest income also declined to Rs 4,640 crore during the reporting quarter against Rs 5,408 crore.

Decline in fee and other income was relatively limited, with the overall number dropping to Rs 2,157 crore from Rs 2,442 crore in the year-ago period.

The gross non-performing assets ratio for the lender increased to 3.64 per cent in June against 3.13 per cent in March, but the provisions declined on-quarter to Rs 1,760 crore from Rs 2,522 crore.

The overall capital adequacy of the lender stood at 16.63 per cent as of June 30, and included a core buffer of 15.48 per cent.

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Private Banks posts Net loss of ₹2,328 crore in Q4

For the January–March period, Mumbai-based private lender IndusInd Bank Ltd. reported a net loss of ₹2,328 crore due to stress in the microfinance portfolio and previously documented accounting irregularities that negatively impacted the balance sheet. According to a CNBC-TV18 poll, the net loss was ₹514 crore. The findings were released on Wednesday, May 21, after market hours. 

For the first time in two decades, IndusInd Bank has disclosed a quarterly financial loss. IndusInd Bank last declared a loss during the fourth quarter of the 2006 fiscal year, when Bhaskar Ghose was the bank's chief executive officer. The lender has only ever reported a loss once in its trading existence, and that was in March 2001.

IndusInd's Net Interest Income (NII) or core income declined by 43.4% from the same quarter last year to ₹3,048 crore, which is lower with the CNBC-TV18 poll of ₹4,762.4 crore.

Asset quality for the lender deteriorated on a sequential basis, with Gross NPA at 3.13% from 2.25% in the December quarter, while net NPA for the quarter stood at 0.95% from 0.68% in the previous quarter.

In a separate filing, IndusInd Bank stated that the Internal Audit Department submitted a report on May 20, where an amount of ₹172.58 crore was incorrectly recorded as fee income in the Microfinance business over three quarters ending December 31, 2024 and was reversed in the fourth quarter.

IndusInd Bank's advances grew by 1.3% during the January-March period on a year-on-year basis, which was the weakest growth in 17 quarters. On the sequential basis, loan growth declined by 5.2%, which was the biggest decline in 37 quarters or more.

Deposits grew by 6.8% during the March quarter, in comparison to the year-ago period to ₹4.11 lakh crore. This was the weakest deposit growth reported by the lender in the last 19 quarters.

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IndusInd Bank Q3 results: Net profit declines 39%

In the third quarter of fiscal year 2025, IndusInd Bank recorded a net profit of Rs 1,402 crore on January 31, 2025, which was 39% less than the Rs 2,301 crore reported in the same quarter the year before.

The net profit for IndusInd Bank's October–December quarter was predicted to drop 38.6% year over year to Rs 1,411 crore, while the net interest income was predicted to increase by 10% to Rs 5,833 crore.

At Rs 5228 crore, the net interest income (NII) was 1.2% less than the Rs 5,295 crore earned the previous year.

Also Read - Quarterly Financial Results of Public & Private sector banks for Q3FY25

In Q3 of FY25, the lender's gross non-performing assets (GNPA) were Rs 8375 crore, or 2.25 percent, as opposed to Rs 6,279 crore, or 1.92 percent, in the previous year.

Net Non-Performing Assets (NNPA) stood at Rs 2496 crore (0.68 percent) versus Rs 1,864 (0.57 percent) last year.

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IndusInd Bank Q4 Results: Net Profit up by 15%

Private sector lender IndusInd Bank recorded a net profit of Rs 2,349 crore for the January-March quarter of fiscal year (FY) 2023-24, up 15 per cent from Rs 2,043 crore in the previous year. The net profit, at Rs 2,349 crore, exceeds the market forecast of Rs 2,261 crore.

In its quarterly statement earlier this month, the bank reported that net loans increased by 18 per cent, exceeding a 14 per cent increase in deposits.

The bank’s gross non-performing asset (NPA) ratio fell to 1.92 per cent from 1.98 per cent in the same period last year. In contrast, net NPA for the quarter was 0.57 per cent, up from 0.59 per cent the previous year.

Also Read |  ICICI Bank Q4 Net Profit Rises 17.4%

Net interest income, or the difference between interest collected and paid, increased 15 per cent to Rs 5,376 crore. The lender’s net interest margin was 4.26 percent, compared to 4.28 percent the previous year.

Sumant Kathpalia, Managing Director & Chief Executive Officer, IndusInd Bank said: “We are looking at growing our branches from the existing 2,800 to 3,500 in the next two years. Our operating expenses jumped in FY24 and we hired around 11,000 employees in FY24. Our total expense in IT is around 8-10 per cent of our total cost to income.”

Operating expenses for the quarter ended March 31, 2024 grew by 24 per cent to Rs 3,803 crores, compared to Rs 3,066 crore for the same quarter the previous year.

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IndusInd Bank Q3 Results: Net profit rises 17% YoY

 

Private lender IndusInd Bank on Thursday reported standalone net profit growth of 17% YoY at Rs 2,298 crore for the quarter ended December. It was Rs 1,959 crore in the year-ago period.

The profit was slightly above analysts' expectations. An ET Now Poll predicted PAT figure to be around Rs 2,272 crore.

Other income during the third quarter increased 15% YoY to Rs 2,396 crore against Rs 2,076 crore in the corresponding quarter of the previous year.

Provisions (other than tax) and contingencies fell 9% YoY to Rs 969 crore in the reporting period. The same stood at Rs 1,065 crore a year ago.

Operating profit (before provisions and contingencies) jumped nearly 10% YoY to Rs 4,042 crore in the third quarter against Rs 3,686 crore in the last year quarter.

On the asset quality front, gross non-performing assets (NPAs) declined to 1.92% in the said third quarter against 2.06% in the December 2022 quarter and 1.93% in the preceding September quarter.

Net NPAs, on the other hand, also fell to 0.57% from 0.62% a year ago.

The lender had a capital adequacy ratio of 17.86% as per Base III norms, down from 18.21% in the preceding quarter and 18.01% in the year-ago quarter. The CET 1 ratio in the reporting period was at 16.07%.

The Provision Coverage Ratio was consistent at 71%, as of December 2023. Net Interest Margin for the third quarter stood at 4.29%, flat compared with the preceding September quarter.

The bank's balance rose 10% YoY to Rs 4.88 lakh crore in the December quarter. Deposits stood at Rs 3.68 lakh crore, showing an increase of 13%, while advances rose 20% to Rs 3.27 lakh crore.

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IndusInd Bank Q1 Results: Net profit jumps 33% YoY

Private sector lender IndusInd Bank on July 18 reported a net profit of Rs 2,124 crore for the April-June quarter, which marks a 33 percent jump as compared to Rs 1,631 crore clocked in the year-ago period.

The net profit, at Rs 2,124 crore, is almost in line with the CNBC TV-18 poll estimate of Rs 2,127 crore.

Total income for Q1FY24 rose by 28 percent on-year to Rs 12,939 crore. This includes a net interest income (NII) of Rs 5,863 crore, which increased by 18 percent as compared to Rs 4,125 crore reported in the corresponding quarter of the previous fiscal.

The NII, at Rs 5,863 crore, is 21 percent higher as against the CNBC TV-18 poll estimate of Rs 4,821.7 crore.

The bank's gross non-performing asset (NPA) stood at 1.94 percent, down from 2.35 percent recorded in the same quarter last year. On the other hand, net NPA of IndusInd Bank for the quarter stood at 0.58 percent, improving from 0.67 percent on a year-on-year basis.

In absolute terms, the gross NPA at the end of Q1FY24 stood at Rs 5,941 crore, which is 2 percent higher as against Rs 5,826 crore in Q4FY23. Similarly, the net NPA at Rs 1,747 crore is 1.9 percent higher than Rs 1,715 crore reported in the last quarter.

IndusInd Bank's operating profit, without taking into account provisions and contingencies, came in at Rs 3,830 crore, which is 13 percent higher on-year. Provisions for the quarter under review stood at Rs 992 crore, which is lower than Rs 1,251 crore in Q1FY23.

The lender's capital adequacy ratio, as per the Basel III norms, came in at 18.04 percent in the first quarter, as compared to 17.86 percent in the fourth quarter of the last fiscal.

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IndusInd Bank Q1 Results: Profit rises 64% YoY to Rs 1,603 crore, beats estimates

 

IndusInd Bank on Wednesday reported a 64.44 per cent year-on-year (YoY) rise in standalone net profit at Rs 1,603.29 crore compared with Rs 974.95 crore in the corresponding quarter last year.

The profit figure beat Rs 1,470 crore profit anticipated by anlaysts in an ET NOW poll.

Interest earned for the quarter rose 8.01 per cent YoY to Rs 8,181.77 crore from Rs 7,574.70 crore.

The private lender made provisions and contingencies worth Rs 1,250.99 crore, which was lower than Rs 1,461.62 crore in March quarter and Rs 1,779.33 crore in the year-ago quarter.

Gross non-performing assets as percentage of total advances stood at 2.35 per cent, higher than March quarter's 2.27 per cent, but lower than year-ago's 2.88 per cent.

In its business update earlier this month, the bank said its total deposits jumped 13 per cent to Rs 3,03,094 crore in June quarter compared with Rs 2,67,630 crore in the year-ago quarter. The bank's net advances were up 18 per cent at Rs 2,49,541 crore against Rs 2,10,727 crore in the previous year.

Retail deposits and deposits from small business customers amounted to Rs 1,24,105 crore as of June 30 compared with Rs 1,20,507 crore as of March 31, 2022.

The CASA ratio increased to 43.2 per cent in June quarter from 42.8 per cent in the March quarter and 42.1 per cent in the year-ago quarter, the lender said.

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