IndusInd Bank Q1 FY26: Profit tumbles 72% YoY to Rs 604 crore; asset quality weakens
IndusInd Bank's Net Interest Income (NII), a key measure of core lending activity, dropped to Rs 4,640 crore in Q1 FY26 from Rs 5,408 crore in Q1 FY25. Non-interest income, which includes fees and other charges, also declined to Rs 2,157 crore from Rs 2,442 crore a year earlier.
- Jul 28, 2025,
- Updated Jul 28, 2025 5:53 PM IST
IndusInd Bank Ltd on Monday reported a steep 72.18 per cent year-on-year (YoY) decline in its net profit for the June 2025 quarter (Q1 FY26), with earnings plunging to Rs 604 crore from Rs 2,171 crore in the corresponding quarter of the previous fiscal (Q1 FY25).
The bank's Net Interest Income (NII), a key measure of core lending activity, dropped to Rs 4,640 crore in Q1 FY26 from Rs 5,408 crore in Q1 FY25. Non-interest income, which includes fees and other charges, also declined to Rs 2,157 crore from Rs 2,442 crore a year earlier.
Consequently, total income -- comprising interest and fee-based income -- fell to Rs 14,421 crore, compared with Rs 14,988 crore in the same period last year.
Asset quality took a hit in the June quarter. Gross Non-Performing Assets (GNPA) rose to 3.64 per cent of gross advances, up from 3.13 per cent in the March 2025 quarter (Q4 FY25). Net NPA increased to 1.12 per cent from 0.95 per cent in the same period.
However, the bank maintained a stable Provision Coverage Ratio (PCR) at 70 per cent as of June 30, 2025. Provisions and contingencies for the quarter stood at Rs 1,760 crore, lower than Rs 2,522 crore reported in Q4 FY25. Total loan-related provisions stood at Rs 10,472 crore, amounting to 3.14 per cent of the loan book.
The lender's balance sheet size expanded marginally by 2 per cent YoY to Rs 5,39,552 crore as of June 30, 2025, from Rs 5,30,165 crore in the year-ago period.
Deposits, however, saw a marginal decline, slipping to Rs 3,97,144 crore from Rs 3,98,513 crore YoY. The low-cost CASA (Current Account Savings Account) deposits stood at Rs 1,25,006 crore, accounting for 31.48 per cent of total deposits. Of this, current account deposits were Rs 33,892 crore and savings account deposits were Rs 91,113 crore.
Advances declined to Rs 3,33,694 crore, down from Rs 3,47,898 crore in Q1 FY25, reflecting a subdued credit environment.
Meanwhile, shares of IndusInd Bank settled 2.62 per cent lower at Rs 802.15 earlier in the day.
IndusInd Bank Ltd on Monday reported a steep 72.18 per cent year-on-year (YoY) decline in its net profit for the June 2025 quarter (Q1 FY26), with earnings plunging to Rs 604 crore from Rs 2,171 crore in the corresponding quarter of the previous fiscal (Q1 FY25).
The bank's Net Interest Income (NII), a key measure of core lending activity, dropped to Rs 4,640 crore in Q1 FY26 from Rs 5,408 crore in Q1 FY25. Non-interest income, which includes fees and other charges, also declined to Rs 2,157 crore from Rs 2,442 crore a year earlier.
Consequently, total income -- comprising interest and fee-based income -- fell to Rs 14,421 crore, compared with Rs 14,988 crore in the same period last year.
Asset quality took a hit in the June quarter. Gross Non-Performing Assets (GNPA) rose to 3.64 per cent of gross advances, up from 3.13 per cent in the March 2025 quarter (Q4 FY25). Net NPA increased to 1.12 per cent from 0.95 per cent in the same period.
However, the bank maintained a stable Provision Coverage Ratio (PCR) at 70 per cent as of June 30, 2025. Provisions and contingencies for the quarter stood at Rs 1,760 crore, lower than Rs 2,522 crore reported in Q4 FY25. Total loan-related provisions stood at Rs 10,472 crore, amounting to 3.14 per cent of the loan book.
The lender's balance sheet size expanded marginally by 2 per cent YoY to Rs 5,39,552 crore as of June 30, 2025, from Rs 5,30,165 crore in the year-ago period.
Deposits, however, saw a marginal decline, slipping to Rs 3,97,144 crore from Rs 3,98,513 crore YoY. The low-cost CASA (Current Account Savings Account) deposits stood at Rs 1,25,006 crore, accounting for 31.48 per cent of total deposits. Of this, current account deposits were Rs 33,892 crore and savings account deposits were Rs 91,113 crore.
Advances declined to Rs 3,33,694 crore, down from Rs 3,47,898 crore in Q1 FY25, reflecting a subdued credit environment.
Meanwhile, shares of IndusInd Bank settled 2.62 per cent lower at Rs 802.15 earlier in the day.