IndusInd Bank
Asset quality weakens: The bank has continued to witness pressure on asset quality in Q1FY2026.
The fresh slippages of loans stood at Rs 2567 crore in Q1FY2026 compared with 5014 crore in previous quarter and Rs 1536 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 239 crore, upgradations at Rs 230 crore and the write-off of loans was at Rs 664 crore in Q1FY2026. The standard restructured loan book of the bank declined to Rs 334 crore end June 2025. Provision coverage ratio was steady at 70.00% at end June 2025 compared to 70.00% a quarter ago and 71.00% a year ago. The capital adequacy ratio of the bank stood at 16.6% with Tier I ratio at 15.5% at end June 2025. The risk weighted assets of the bank has increased 5% YoY to Rs 409810 crore end June 2025,| Asset Quality Indicators: Indusind Bank | ||||||||
| ? | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Variation | ? | |
| QoQ | YoY | ? | ||||||
| Gross NPA (Rs Crore) | 12480.56 | 11046.39 | 8375.29 | 7638.52 | 7126.80 | 13 | 75 | ? |
| Net NPA (Rs Crore) | 3721.52 | 3287.14 | 2495.76 | 2282.01 | 2095.47 | 13 | 78 | ? |
| % Gross NPA | 3.64 | 3.13 | 2.25 | 2.11 | 2.02 | 51 | 162 | ? |
| % Net NPA | 1.12 | 0.95 | 0.68 | 0.64 | 0.60 | 17 | 52 | ? |
| % PCR | 70.00 | 70.00 | 70.00 | 70.00 | 71.00 | 0 | -100 | ? |
| % CRAR - Basel III | 16.63 | 16.24 | 16.46 | 16.51 | 17.55 | 39 | -92 | ? |
| % CRAR - Tier I - Basel III | 15.48 | 15.10 | 15.18 | 15.21 | 16.15 | 38 | -67 | ? |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
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Business Highlights:
Business volume declines: The business of the bank has declined 2% YoY to Rs 730838 crore end June 2025, driven by 4% dip in advances to Rs 333694 crore. Deposits were flat at Rs 397144 crore at end June 2025.
CASA deposits ratio declines: The CASA deposits of the bank dipped 14% YoY to Rs 125005 crore at end June 2025. The current account deposits declined 30% to Rs 33892 crore, while saving account deposits fell 7% to Rs 91113 crore end June 2025. The CASA ratio declined to 31.5% at end June 2025 compared to 36.7% at end June 2024, while fell from 32.8% a quarter ago. The term deposits have increased 8% to Rs 272139 crore end June 2025.
Corporate and MSME loan book declines: The retail loans increased 6% YoY to Rs 201273 crore at end June 2025. However, the MSME credit declined 17% to Rs 59722 crore and corporate credit slipped 15% to Rs 72699 crore end June 2025.
Investment book of the bank increased 8% YoY to Rs 109147 crore at end June 2025.
Margins plunge: The bank has shown 9 bps YoY decline in cost of deposits to 6.44%, while yield on advances dipped 95 bps YoY to 11.62% in Q1FY2026. NIM has declined 79 bps YoY to 3.46% in Q1FY2026.
Branch expansion: The bank has added 29 branches and 25 ATMs in Q1FY2026, taking overall tally to 3110 branches and 3052 ATM`s end June 2025.
Book value of the bank stood at Rs 839.1 per share at end June 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 790.9 per share at end June 2025.
Quarterly Performance
NII dips as NIM plunges: Bank has recorded 2% decline in the interest earned at Rs 12263.88 crore, while interest expenses increased 7% to Rs 7624.06 crore in Q1FY2026. NII fell 14% to Rs 4639.82 crore in the quarter ended June 2025.
Core fee income declines: Bank has posted sharp 35% dip in core fee income to Rs 1383 crore, while the forex income declined 27% to Rs 149 crore. However, the treasury income surged 572% to Rs 625 crore, restricting decline in overall non-interest income at 12% to Rs 2156.24 crore in the quarter ended June 2025.
Expenses ratio jumps: The operating expenses of the bank increased 6% to Rs 4143.90 crore, as other expenses moved up 3% to Rs 2848.13 crore, while employee expenses increased 12% to Rs 1295.77 crore in Q1FY2026. Cost to income ratio jumped to 61.0% in Q1FY2026 compared with 50.0% in Q1FY2025, leading to 32% dip in the Operating Profit to Rs 2652.16 crore.
Provisions and contingencies surges: The bank has shown 66% jump in provisions to Rs 1737.78 crore in Q1FY2026.
Effective tax rate was flat at 25.2% in Q1FY2026 from 25.2% in Q1FY2025. Net Profit dipped by 68% YoY to Rs 684.25 crore during quarter ended June 2025.
Financial Performance FY2025:
Bank has posted 70% dip in net profit to Rs 2642.90 crore in the year ended March 2025 (FY2025). The net interest income declined 8% to Rs 19031.32 crore, while non-interest income slipped 18% to Rs 7684.19 crore, leading to 11% decline in net total income to Rs 26715.51 crore in FY2025. The operating expenses increased 13% to Rs 16070.65 crore, while provision and contingencies galloped 85% to Rs 7030.14 crore, causing 70% plunge in profit before tax to Rs 3614.72 crore in FY2025. The cost-to-income ratio surged to 60.2% in FY2025 compared to 47.5% in FY2024. An effective tax rate rose to 26.9% in FY2025 compared to 25.1% in FY2024. The net profit has declined 70% to Rs 2642.90 crore in FY2025. ?| Indusind Bank: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 12263.88 | 12546.77 | -2 | 48667.67 | 45748.21 | 6 |
| Interest Expended | 7624.06 | 7139.14 | 7 | 29636.35 | 25132.30 | 18 |
| Net Interest Income | 4639.82 | 5407.63 | -14 | 19031.32 | 20615.91 | -8 |
| Other Income | 2156.24 | 2441.25 | -12 | 7684.19 | 9387.85 | -18 |
| Net Total Income | 6796.06 | 7848.88 | -13 | 26715.51 | 30003.76 | -11 |
| Operating Expenses | 4143.90 | 3922.19 | 6 | 16070.65 | 14263.49 | 13 |
| Operating Profits | 2652.16 | 3926.69 | -32 | 10644.86 | 15740.27 | -32 |
| Provisions & Contingencies | 1737.78 | 1049.84 | 66 | 7030.14 | 3798.74 | 85 |
| Profit Before Tax | 914.38 | 2876.85 | -68 | 3614.72 | 11941.53 | -70 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 914.38 | 2876.85 | -68 | 3614.72 | 11941.53 | -70 |
| Provision for tax | 230.13 | 724.69 | -68 | 971.82 | 2991.75 | -68 |
| PAT | 684.25 | 2152.16 | -68 | 2642.90 | 8949.78 | -70 |
| EPS*(Rs) | 35.1 | 110.5 | ? | 33.9 | 114.9 | ? |
| Equity | 779.1 | 778.7 | ? | 779.1 | 778.3 | ? |
| Adj BV (Rs) | 790.9 | 810.4 | ? | 781.4 | 776.0 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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