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Informist, Friday, Apr. 24, 2026

 

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--IndusInd Bank liquidity coverage ratio 118% on Mar 31 
--IndusInd Bank Jan-Mar yield on advances 11.15% vs 11.08% qtr ago 
--IndusInd Bank Jan-Mar cost of funds 5.14% vs 5.26% qtr ago 
--IndusInd Bank Jan-Mar cost of deposits 6.07% vs 6.09% qtr ago 
--IndusInd Bank Jan-Mar recoveries INR 2.63 bln vs INR 2.35 bln qtr ago 
--IndusInd Bank Jan-Mar upgrades INR 2.03 bln vs INR 1.66 bln qtr ago 
--IndusInd Bank Jan-Mar write-offs INR 18.68 bln vs INR 26.12 bln qtr ago 
--IndusInd Bk Jan-Mar fresh additions INR 18.25 bln vs INR 25.60 bln qtr ago 
--IndusInd Bank provision coverage ratio 71% on Mar 31 
--IndusInd Bank loans down 1% QoQ, deposits up 2% QoQ 
--IndusInd Bank deposits at INR 3.999 tln on Mar 31, down 3% on yr 
--IndusInd Bank loans at INR 3.16 tln on Mar 31, down 8% on year 
--IndusInd Bank Jan-Mar net interest margin 3.39% vs 3.52% qtr ago 
--IndusInd Bank Q4 consol net interest income INR 43.71 bln, up 43% on year 
--IndusInd Bank FY26 total income INR 534.68 bln vs INR 563.52 bln yr ago 
--IndusInd Bank FY26 net profit INR 9.33 bln vs INR 26.43 bln yr ago 
--IndusInd Bank Basel III capital adequacy ratio 17.48% on Mar 31 
--IndusInd Bank net NPA ratio 1.00% on Mar 31 vs 1.04% qtr ago 
--IndusInd Bank gross NPA ratio 3.43% on Mar 31 vs 3.56% qtr ago 
--IndusInd Bank Jan-Mar provisions INR 14.84 bln vs INR 24.17 bln year ago 
--IndusInd Bank final dividend record date Jun 26 
--IndusInd Bank to pay INR 1.50 per share final dividend 
--IndusInd Bank Jan-Mar total income INR 127.12 bln vs INR 113.43 bln yr ago 
--IndusInd Bank Jan-Mar net profit INR 5.33 bln vs loss INR 22.36 bln yr ago 
--Analysts saw IndusInd Bank Jan-Mar net profit at INR 3.15 bln 
--IndusInd Bank Jan-Mar net profit INR 5.33 bln

 

By Priyasmita Dutta

NEW DELHI – IndusInd Bank posted a net profit for the March quarter against a loss in the year-ago period, on the back of a healthy rise in its net interest income as well as other income. A sharp fall in provisions also helped the bank beat Street estimates for net profit.

 

The bank's bottom line for Jan-Mar came in at INR 5.33 billion, sharply higher than analysts' expectation of INR 3.15 billion. Sequentially, the net profit was more than three times the quarter-ago figure, registering the sharpest rise in 27 quarters, according to data available with Informist. IndusInd Bank had reported a rare quarterly loss of INR 22.36 billion in the March quarter last year, following discrepancies in the bank's derivatives portfolio accounting. 

 

The bank's consolidated net interest income rose 43% on year to INR 43.72 billion, slightly lower than analysts' expectation of INR 44.51 billion. Sequentially, the net interest income fell 4%. 

 

The private-sector bank's bottom line benefited significantly from the 141% on-year surge in its other income to INR 17.06 billion. To note, this is the sharpest ever on-year rise in the bank's other income, data with Informist starting Oct-Dec 2015 showed. Sequentially, the other income was almost flat. 

 

As such, the bank's total income during the March quarter rose 12% on year and fell 3% on quarter to INR 127.12 billion. Total expenses, on the other hand, were down 11% on year and 3% on quarter at INR 104.97 billion during Jan-Mar. 

 

While profitability has improved from the year-ago quarter, the hit to the bank's reputation from the accounting issue last year continues to weigh on its advances and deposits. IndusInd Bank's net advances fell over 8% on year to INR 3.16 trillion as of Mar. 31, and deposits declined nearly 3% to INR 4 trillion. 

 

In line with analysts' view, IndusInd Bank's net interest margin during the March quarter eased slightly to 3.39% compared to 3.52% for Oct-Dec, but sharply higher than 2.25% in the March quarter last year. Its cost of funds was 5.14% during the quarter, lower than 5.26% at December-end and 5.60% at the end of March last year. Cost of deposits, meanwhile, was 6.07% at the end of the March quarter, similar to the trailing quarter, but lower than 6.50% at the end of March last year. The yield on advances was 11.15% as of Mar. 31, compared to 11.08% at the end of December and 9.45% at end of March 2025. 

 

"At IndusInd Bank, we are seeing improved growth momentum across businesses, supported by focused execution and strengthening fundamentals," Managing Director and Chief Executive Officer Rajiv Anand said in a press release. "In our microfinance portfolio, lower slippages during the quarter have contributed to better asset quality. We believe this reflects stronger underlying discipline and is not a one-off improvement," he said. "Our focus remains on sustaining this through prudent underwriting, calibrated risk management and consistent execution."

 

Asset quality showed sequential improvement but weakened compared with the year-ago period. The gross non-performing asset ratio eased to 3.43% as of Mar. 31 from 3.56% as of Dec. 31, but remained higher than 3.13% a year earlier. The net non-performing asset ratio improved sequentially to 1.00% at the end of March from 1.04% at the end of December, but deteriorated from 0.95% a year earlier.

 

The lender reported a capital adequacy ratio of 17.48%, better than 16.94% at the end of December and 16.24% at the end of March last year. Its liquidity coverage ratio was 118% as of Mar. 31. Shares of the company closed at INR 847.95 on the National Stock Exchange Friday, down 1.4% from the previous close. It released its March quarter earnings post-market hours. 

 

The bank's provisions during the quarter fell sharply, boosting the bottom line. Provisions fell 39% on year and 29% on quarter to INR 14.84 billion. The provision coverage ratio of the bank was 71% at the end of March, lower than 72% at end of December, but higher than 70% at end of March last year. Its credit cost was 1.89%, lower than 2.62?cember-end and 2.86% at the end of March last year. 

 

Even as the asset quality worsened, IndusInd Bank's fresh slippages reduced to nearly one-third from the year-ago quarter to INR 18.25 billion. Slippages were INR 50.14 billion in the March quarter of 2025. The bank wrote off INR 18.68 billion in Jan-Mar, almost the same as the amount written off in the March quarter last year. Recoveries during the quarter were INR 2.63 billion, higher than INR 2.35 billion in the trailing quarter but lower than INR 2.77 billion in the year-ago quarter. Upgrades during the quarter totalled INR 2.03 billion, higher than INR 1.66 billion a quarter ago and lower than INR 2.16 billion a year ago. 

 

For the full year of 2025-26 (Apr-Mar), IndusInd Bank's net profit was INR 9.33 billion, 65% down on year. Total income in the same period was 5% lower at INR 534.68 billion. "While geopolitical uncertainties persist, India's growth outlook remains stable, and we remain focused on participating in this growth in a prudent and sustainable manner," Anand said. 

 

The bank's board Friday also approved a final dividend of INR 1.50 per share for FY26 and set Jun. 26 as the record date.  End

 

Edited by Tanima Banerjee

 

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