IndusInd Bank shares in focus after Q2 business update; loans, deposits decline

Shares of IndusInd Bank Ltd are likely to be in focus on Monday after the private sector lender released its business update for the September quarter following market hours on Friday.

The Mumbai-based bank reported an 8 per cent year-on-year (YoY) decline in net advances to Rs 3.27 lakh crore from Rs 3.57 lakh crore in the same quarter last year. On a quarter-on-quarter (QoQ) basis, advances were down 2 per cent, marking the third straight quarterly decline in the lender's loan book.

Deposits also fell 5.5 per cent YoY to Rs 3.89 lakh crore, compared to Rs 4.12 lakh crore a year ago. Sequentially (QoQ), deposits were lower by 2 per cent. The bank's CASA ratio dropped to 30.8 per cent from 35.9 per cent in the corresponding quarter last year.

Retail and small business deposits slipped marginally to about Rs 1.84 lakh crore from nearly Rs 1.85 lakh crore in the June quarter.

During the quarter, the bank appointed Viral Damania as Chief Financial Officer (CFO) and Key Managerial Personnel, effective September 22, 2025. Following the appointment, Santosh Kumar's additional responsibilities as Special Officer (Finance & Accounts) and his categorisation as a Key Managerial Personnel ceased, though he continues as Deputy CFO.

The management change follows the appointment of Rajiv Anand as Managing Director and Chief Executive Officer (MD & CEO) for a three-year term beginning August 2025.

IndusInd Bank has been under regulatory scrutiny this year after accounting discrepancies were identified in its derivatives portfolio and later in its microfinance operations, leading to the resignations of former CEO Sumant Kathpalia and Deputy CEO Arun Khurana in April 2025.

On Friday, IndusInd Bank shares closed 0.52 per cent higher at Rs 747.55 on BSE.