IndusInd Bank’s Q1 net profit crashes 68 pc

Mumbai, July 28 IndusInd Bank on Monday reported a sharp 68 per cent year-on-year (YoY) fall in net profit for the first quarter of the financial year 2025-26 (Q1 FY26).

The private sector lender posted a profit of Rs 684 crore for the June quarter, compared to Rs 2,152.16 crore in the same period previous year (Q1 FY25), according to its stock exchange filing.

The bank's net interest income (NII) also declined by 14 per cent YoY, coming in at Rs 4,640 crore.

Fee and other income dropped to Rs 2,157 crore from Rs 2,442 crore in Q1 FY25, the company said in its regulatory filing.

Total income for the quarter, including interest and fee-based revenue, stood at Rs 14,421 crore -- lower than Rs 14,988 crore recorded in the corresponding quarter previous year.

In terms of business activity, the bank's total advances shrank by 4 per cent YoY to Rs 3.34 lakh crore.

Within consumer banking, the vehicle finance loan book stood at Rs 96,357 crore, while non-vehicle finance was Rs 76,508 crore and micro loans were Rs 28,408 crore.

Corporate banking advances were reported at Rs 1.33 lakh crore, accounting for 40 per cent of the bank’s total lending.

The bank’s balance sheet grew modestly, with total assets at Rs 5.39 lakh crore as of June 30, up 2 per cent from Rs 5.30 lakh crore a year ago.

Deposits stood at Rs 3.97 lakh crore, slightly lower than Rs 3.98 lakh crore in June 2024.

CASA (Current and Savings Account) deposits made up 31.48 per cent of total deposits, with savings deposits at Rs 91,113 crore and current account deposits at Rs 33,892 crore.

Asset quality weakened during the quarter. Gross non-performing assets (NPAs) rose to 3.64 per cent of total advances, up from 3.13 per cent at the end of March 2025.

Net NPAs increased to 1.12 per cent from 0.95 per cent in the previous quarter. However, the bank maintained its provision coverage ratio at a stable 70 per cent.

Provisions and contingencies for the quarter were Rs 1,760 crore, lower than Rs 2,522 crore in the March 2025 quarter.

Total loan-related provisions stood at Rs 10,472 crore -- making up 3.14 per cent of the total loan book.

Chairman Sunil Mehta acknowledged the challenges faced in the previous quarter but said the bank has delivered clean and profitable results in Q1.

He assured that the leadership transition process is on track, and the Board is confident about the way forward.

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