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Informist, Saturday, Oct. 18, 2025

 

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--IndusInd Bank Jul-Sept net loss INR 4.45 bln 
--Analysts saw IndusInd Bank Jul-Sept net profit at INR 5.83 bln 
--IndusInd Bank Jul-Sept net loss INR 4.45 bln vs INR 13.25 bln PAT yr ago 
--IndusInd Bank gross NPA ratio 3.60% as on Sept 30 vs 3.64% qtr ago 
--IndusInd Bank net NPA ratio 1.04% as on Sept 30 vs 1.12% qtr ago 
--IndusInd Bank Jul-Sept total income INR 132.57 bln vs INR 148.70 bln yr ago 
--IndusInd Bank Basel III capital adequacy ratio 17.10% as on Sept 30 
--IndusInd Bank Jul-Sept provisions INR 26.22 bln vs INR 18.20 bln year ago 
--IndusInd Bank Apr-Sept net profit INR 2.39 bln vs INR 34.78 bln yr ago 
--IndusInd Bank Apr-Sept total income INR 276.77 bln vs 298.58 bln year ago 
--IndusInd Bank Jul-Sept net interest income INR 44.09 bln, dn 18% on year 
--IndusInd Bank Jul-Sept net interest margin 3.32%, dn 76 bps on year 
--IndusInd Bank loans INR 3.26 tln as on Sept 30, dn 9% on year 
--IndusInd Bank deposits INR 3.90 tln as on Sept 30, down 6% on year 
--IndusInd Bank provision coverage ratio 72% as on Sept 30 
--IndusInd Bank Q2 fresh additions INR 25.37 bln vs INR 25.67 bln qtr ago 
--IndusInd Bank Jul-Sept write-offs INR 25.17 bln vs INR 6.64 bln qtr ago 
--IndusInd Bank Jul-Sept upgrades INR 1.99 bln vs INR 2.30 bln qtr ago 
--IndusInd Bank Jul-Sept recoveries INR 2.44 bln vs INR 2.39 bln qtr ago 
--IndusInd Bank Q2 average liquidity coverage ratio 132% vs 141% qtr ago  
--IndusInd Bank: Consolidated balance sheet by letting wholesale deposits go 
--IndusInd Bank: Asset quality stable in all core ops except in microfinance 
--IndusInd Bank: Prudently accelerated write-offs, provisions on microfinance 
 

 

By Anshul Choudhary

 

MUMBAI – IndusInd Bank Ltd. fell back into the red in the September quarter due to higher-than-expected provisions on microfinance loans. This was a big disappointment as all the brokerages had expected the bank to report a net profit.

 

The bank reported a net loss of INR 4.45 billion for the September quarter against expectations of a net profit of INR 5.83 billion. It failed to hold on to the June quarter's momentum, when it had reported a net profit of INR 6.84 billion for the first time after taking a hit in the March quarter due to discrepancies in its derivatives portfolio accounting.

 

"Our asset quality trends have been stable in all core businesses except in microfinance wherein industry is facing cyclical pressures," the bank's Managing Director and Chief Operating Officer Rajiv Anand said in a press release. "The Bank accelerated write-offs as well as increased provisions on microfinance as a prudent measure."

 

The bank made a provision of INR 26.22 billion during the quarter, up 44% on year and 51% on quarter. This was sharply higher than the expected provision of INR 15 billion by analysts.

 

Write-off of non-performing assets jumped to INR 25.17 billion in Jul-Sept from INR 6.64 billion a quarter ago. Upgrades were down to nearly INR 2.00 billion from INR 2.30 billion a quarter ago. Recoveries were largely unchanged at INR 2.44 billion. Fresh additions were marginally down to INR 25.37 billion from a quarter ago.

 

IndusInd Bank's net interest income declined largely in line with analysts' expectations. NII for the quarter was INR 44.09 billion, down 17.5% on year and nearly 5% on quarter. The bank's total income was INR 132.57 billion, down nearly 11% on year.

 

The fall in NII affected margins as well, which were below expectations. The bank's net interest margin was 3.32%, down 14 basis points on quarter and 76 bps on year. Brokerages had saw the NIM at 3.40%-3.59%.

 

The bank's net interest income for the September quarter was largely affected by a fall in advances, which has been an issue since the bank's reputation was hit after accounting discrepancies came to light earlier this year. Its net advances at the end of September quarter was INR 3.26 trillion, down 9% on year and 2% on quarter.

 

Deposits fell 2% on quarter and 6% on year to INR 3.90 trillion. The deposits were down likely due to the bank forgoing wholesale deposits during the quarter.

 

The bank's asset quality improved slightly with gross NPA ratio at 3.60% at the end of the quarter compared with 3.64% a quarter ago. Net NPA ratio improved to 1.04% from 1.12% a quarter ago.

 

Among other key parameters, the Basel-III capital adequacy ratio was 17.10% at the end of the quarter. Its provision coverage ratio was 72% against 70% a quarter ago. The liquidity coverage ratio was 132% as compared with 141% a quarter ago.

 

For the six months ended September, IndusInd Bank's net profit was down sharply to just INR 2.39 billion from INR 34.78 billion of profit a year ago. The bank's total income for the six months was down over 7% on year to INR 276.77 billion.

 

On Friday, shares of the bank closed at INR 751 on the National Stock Exchange, down 1.6%. The stock has not recovered from the slump after the accounting discrepancies were first disclosed in March this year. It is down nearly 22% this year and more than 44% from its level about 12 months ago.  End

 

Edited by Ashish Shirke

 

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