Private lender IndusInd Bank on July 28 reported 68 percent decline in standalone net profit at Rs 684 crore for the quarter ended June 30, 2025, hurt by decline in loans and rise in provisions for potential bad loans.

On a consolidated basis, net profit fell 72 percent on-year to Rs 604 crore, as per investor presentation.

The lender's net interest income fell 14 percent year-on-year to Rs 4,640 crore in Q1FY26.

However, the lender's  June quarter numbers are better than estimates. According to Moneycontrol's poll, IndusInd Bank's net interest income (NII) was seen at Rs 4,279 crore in Q1FY26 and profit was pegged at Rs 559 crore in Q1FY26.

In the previous quarter, IndusInd had reported its biggest-ever quarterly loss, as it took a nearly Rs 2,000-crore hit to its accounts in the year ended March 31 due to years of misaccounting of internal derivative trades.

Fee and other income for the Q1FY26 at Rs 2,157 crore as compared to Q1FY25 at Rs 2,442 crore.
Total Income (Interest Income and Fee Income) for Q1FY26 at Rs 14,421 crore as compared to Rs 14,988 crore for the corresponding Q1FY25.

Advances

In the reporting quarter, advances of the bank fell 4 percent year-on-year to Rs 3.34 lakh crore, from Rs 3.48 lakh crore in a year ago period.

Of the total advances, vehicle finance loan book stood at Rs 96,357 crore as on June 30, 2025, non-vehicle finance of Rs 76,508 crore, and micro loans of Rs 28,408 crore, investor presentation showed. All these segments are part of consumer banking business.

Whereas, corporate banking advances stood at Rs 1.33 lakh crore, which constitutes 40 percent of total advances.

Deposits

Balance sheet footage as on June 30, 2025, was Rs 5,39,552 crore as against Rs 5,30,165 crore as on June 30, 2024, marking growth of 2 percent year-on-year.

Deposits as on June 30, 2025, were Rs 3,97,144 crore as against Rs 3,98,513 crore for June 30, 24. CASA
deposits is at Rs 1,25,006 crore with Current Account deposits at Rs 33,892 crore and Savings Account deposits at Rs 91,113 crore. CASA deposits comprised 31.48 percent of total deposits as on June 30, 2025.

Asset quality

Gross NPA were at 3.64 percent of gross advances as on June 30, 2025, as against 3.13 percent as on March 31, 2025. Net NPA were 1.12 percent of net advances as on June 30, 2025, as compared to 0.95 percent as on March 31, 2025.

The Provision Coverage Ratio was stable at 70 percent as on June 30, 2025. Provisions and contingencies for the quarter ended June 30, 2025, were Rs 1,760 crore as compared to Rs 2,522 crore for the quarter ended on March 31, 2025. Total loan related provisions as on June 30, 2025, were at Rs 10,472 crore (3.14 percent of loan book).

Capital Adequacy

The Bank’s Total Capital Adequacy Ratio as per Basel III guidelines (excluding Q1 profits) stands at 16.63 percent as on June 30, 2025, as compared to 17.04 percent as on June 30, 2024. Tier 1 CRAR (excluding Q1 profits) was at 15.48 percent as on June 30, 2025, compared to 15.64 percent as on June 30, 2024. Risk-Weighted Assets were at Rs 4,09,810 crore as against Rs 3,88,838 crore a year ago.