IndusInd Bank Q3 results: Net profit plunges 91% to Rs 128 crore; NII drops 13%
The bank's other income streams also faced headwinds, with fee and other income dropping to Rs 1,707 crore from Rs 2,355 crore in the year-ago period.
- Jan 23, 2026,
- Updated Jan 23, 2026 4:34 PM IST
IndusInd Bank on Friday reported a sharp decline in its bottom line for the quarter ended December 31, 2025, with consolidated net profit plummeting 90.8 per cent year-on-year (YoY) to Rs 127.98 crore. This is a massive drop compared to the Rs 1,402.33 crore net profit the private lender recorded in the corresponding quarter of the previous fiscal year.
The bank's core income engine also sputtered during the quarter. Net Interest Income (NII) fell 12.7 to Rs 4,562 crore in Q3 FY26, down from Rs 5,228 crore in the same period last year.
The yield on assets also saw a compression, standing at 8.78 per cent compared to 9.63 per cent a year ago, although the net interest margin (NIM) showed some sequential improvement, coming in at 3.52 per cent against 3.32 per cent in the previous quarter.
The Gross Non-Performing Assets (NPA) ratio improved marginally to 3.56 per cent from 3.60 per cent sequentially (QoQ).
Meanwhile, the Net NPA ratio remained unchanged at 1.04 per cent. However, the bank continued to build its safety buffers, with provisions and contingencies rising 20 per cent YoY to Rs 2,096 crore, up from Rs 1,744 crore in Q3 FY25. The Provision Coverage Ratio (PCR) stood healthy at 72 per cent as of December 31, 2025.
The bank's other income streams also faced headwinds, with fee and other income dropping to Rs 1,707 crore from Rs 2,355 crore in the year-ago period. Total expenditure for the quarter was reined in at Rs 10,810 crore compared to Rs 11,555 crore last year, but operating expenses ticked up slightly to Rs 3,999 crore. Consequently, the Pre-Provision Operating Profit (PPOP) took a significant hit, falling 37 per cent YoY to Rs 2,270 crore.
The total deposits stood at Rs 3,93,815 crore, while the bank's net worth was reported at Rs 62,077 crore. The capital adequacy ratio (CRAR) remained comfortable at 16.94 per cent.
The company board also approved the appointment of Arijit Basu as an additional director and part-time chairman for a period of three years, effective January 31, 2026.
IndusInd Bank on Friday reported a sharp decline in its bottom line for the quarter ended December 31, 2025, with consolidated net profit plummeting 90.8 per cent year-on-year (YoY) to Rs 127.98 crore. This is a massive drop compared to the Rs 1,402.33 crore net profit the private lender recorded in the corresponding quarter of the previous fiscal year.
The bank's core income engine also sputtered during the quarter. Net Interest Income (NII) fell 12.7 to Rs 4,562 crore in Q3 FY26, down from Rs 5,228 crore in the same period last year.
The yield on assets also saw a compression, standing at 8.78 per cent compared to 9.63 per cent a year ago, although the net interest margin (NIM) showed some sequential improvement, coming in at 3.52 per cent against 3.32 per cent in the previous quarter.
The Gross Non-Performing Assets (NPA) ratio improved marginally to 3.56 per cent from 3.60 per cent sequentially (QoQ).
Meanwhile, the Net NPA ratio remained unchanged at 1.04 per cent. However, the bank continued to build its safety buffers, with provisions and contingencies rising 20 per cent YoY to Rs 2,096 crore, up from Rs 1,744 crore in Q3 FY25. The Provision Coverage Ratio (PCR) stood healthy at 72 per cent as of December 31, 2025.
The bank's other income streams also faced headwinds, with fee and other income dropping to Rs 1,707 crore from Rs 2,355 crore in the year-ago period. Total expenditure for the quarter was reined in at Rs 10,810 crore compared to Rs 11,555 crore last year, but operating expenses ticked up slightly to Rs 3,999 crore. Consequently, the Pre-Provision Operating Profit (PPOP) took a significant hit, falling 37 per cent YoY to Rs 2,270 crore.
The total deposits stood at Rs 3,93,815 crore, while the bank's net worth was reported at Rs 62,077 crore. The capital adequacy ratio (CRAR) remained comfortable at 16.94 per cent.
The company board also approved the appointment of Arijit Basu as an additional director and part-time chairman for a period of three years, effective January 31, 2026.