IndusInd Bank posted a ₹1,242 crore profit for the September quarter as deposits and advances grew at double-digit rates, while lower bad loans and provisions strengthened its recovery despite pressure on margins.
IndusInd Bank delivered a stronger quarter in the three months to September 30, 2026, as deposit growth returned to double digits and asset quality improved further, helping drive a sharp rise in profit. According to the bank’s results and earnings-call summary, deposits rose 10% year on year to ₹4,28,832 crore, advances increased 11% to ₹3,63,104 crore, and profit after tax climbed to ₹1,242 crore from a loss a year earlier. The lender also said it mobilised $3.51 billion through the Reserve Bank of India’s swap window, a move that helped alter its funding mix and support balance-sheet growth.
The improvement in earnings was driven by both revenue and credit trends. Net interest income rose to ₹4,569 crore, up 4% quarter on quarter on a normalised basis, while non-interest income increased 26% to ₹2,248 crore. Pre-provision operating profit advanced 15% quarter on quarter to ₹2,874 crore, even as operating expenses increased 7% to ₹3,943 crore. Provisions fell 12% from the previous quarter and 54% from a year earlier to ₹1,223 crore, and the bank’s return on assets improved to 0.87% from a normalised 0.63% in the prior quarter.
Asset quality also continued to strengthen. Gross non-performing assets eased to 2.73% from 3.60% a year earlier, while net NPAs declined to 0.83% from 1.04%, according to the bank’s quarterly results. Annualised gross slippages improved to 1.8% from 2.1% in the previous quarter, and the provision coverage ratio stood at 70%. The bank said these trends reflected better performance across several loan segments, including vehicle finance, microfinance and home loans.
The bank’s funding profile, however, came with a trade-off. Net interest margin eased to 3.23% from a normalised 3.35% in the prior quarter, with management linking the drop largely to the FCNR(B) mobilisation programme. On the earnings call, chief executive Rajiv Anand said the effect should be temporary, while chief financial officer Viral Damania said the bank expects a gradual recovery in margin over the next two quarters as retail lending growth and liability optimisation feed through. The bank also said savings account balances fell 5% quarter on quarter, although it noted that account openings rose sharply and that retail deposits still made up half of the total deposit base.
Management struck a confident tone on growth and capital. IndusInd said its capital adequacy ratio was 16.59%, with a common equity tier 1 ratio of 15.55% and liquidity coverage ratio of 127%, leaving room for further expansion. The bank added 124 outlets during the quarter and plans to open roughly 100 more branches, while also increasing headcount by about 4,300, mainly in sourcing roles. Anand said the lender remains focused on building a stronger deposit franchise, deepening fee income and sustaining higher-quality loan growth, even as it watches for possible margin pressure from a tighter liquidity environment and higher deposit costs later in the year.
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