IndusInd Bank announced a net loss of ₹437 crores for Q2 FY26, compared to a net profit of ₹1,331 crores in Q2 FY25. Net Interest Income (NII) stood at ₹4,409 crores, down from ₹5,347 crores year-over-year. The bank focused on balance sheet consolidation, reducing wholesale deposits and being cautious on microfinance disbursements. Gross NPA and Net NPA ratios were reported at 3.60% and 1.04%, respectively, with a Provision Coverage Ratio (PCR) of 71.81%.
Financial Performance Overview
IndusInd Bank reported a net loss of ₹437 crores for the quarter ended September 30, 2025 (Q2 FY26). This contrasts with a net profit of ₹1,331 crores for the corresponding quarter of the previous year. The bank’s Net Interest Income (NII) for Q2 FY26 was ₹4,409 crores, compared to ₹5,347 crores in Q2 FY25. NIM stood at 3.32% for Q2 FY26 as against 4.08% for Q2 FY25.
Key Financial Metrics
Several key financial metrics were highlighted in the announcement:
- Net worth: ₹62,524 crores in Q2 FY26 (₹63,888 crores in Q2 FY25)
- Deposits: ₹3,89,600 crores in Q2 FY26 (₹4,12,397 crores in Q2 FY25)
- Gross NPA: 3.60%
- Net NPA: 1.04%
- Provision Coverage Ratio (PCR): 71.81%
- Capital Adequacy Ratio (CRAR): 17.10%
Balance Sheet and Asset Quality
The bank’s balance sheet footage as of September 30, 2025, was ₹5,27,490 crores. Advances were reported at ₹3,25,881 crores. Asset quality saw Gross NPA at 3.60% of gross advances and Net NPA at 1.04% of net advances.
Strategic Focus
The bank is focusing on consolidating its balance sheet by reducing wholesale deposits and being cautious in microfinance disbursements. Management emphasized maintaining stable core pre-provision operating profit and addressing cyclical pressures in the microfinance sector through increased provisions and write-offs. This strategy aims to strengthen the balance sheet and accelerate normalization of underlying profitability.
Network and Outreach
As of September 30, 2025, IndusInd Bank’s distribution network included 3,116 branches/banking outlets and 3,054 onsite and offsite ATMs. The bank serves approximately 42 million customers.
Source: BSE
