IndusInd Bank Q1 results: Net profit down 72% to ₹604cr
What's the story
IndusInd Bank has reported a massive 72.18% year-on-year decline in its net profit for the June quarter (Q1 FY26). The bank's earnings fell to ₹604 crore from ₹2,171 crore in the same period last fiscal (Q1 FY25). The decline was largely due to a fall in net interest income (NII) and non-interest income.
Financial performance
NII fell to ₹4,640cr
The bank's NII, a key indicator of core lending activity, fell to ₹4,640 crore in Q1 FY26 from ₹5,408 crore in Q1 FY25. Non-interest income also witnessed a decline, falling to ₹2,157 crore from ₹2,442 crore last year. This resulted in a fall in total income—interest and fee-based income—to ₹14,421 crore against ₹14,988 crore during the same period last year.
Asset quality
Asset quality deteriorates
IndusInd Bank's asset quality also took a hit in the June quarter. The gross non-performing assets (GNPA) ratio rose to 3.64% of gross advances from 3.13% in the March quarter (Q4 FY25). Similarly, the net NPA ratio increased to 1.12% from 0.95% during the same period, indicating a deterioration in asset quality for the bank during this period.
Financial stability
Balance sheet size grows marginally
Despite the challenges, IndusInd Bank's balance sheet size grew marginally by 2% YoY to ₹5,39,552 crore as of June 30. However, deposits saw a slight decline to ₹3,97,144 crore from ₹3,98,513 crore YoY. The bank maintained a stable provision coverage ratio (PCR) at 70% as of June 30, with provisions and contingencies for the quarter standing at ₹1,760 crore against ₹2,522 crore reported in Q4 FY25.