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Key Points

IndusInd Bank is facing significant challenges in its second quarter performance. Both advances and deposits have declined compared to last year and the previous quarter. The bank's profitability took a major hit with net profit dropping by 68 percent. While net interest margin improved slightly, asset quality showed mixed trends with rising NPAs.

Key Points: IndusInd Bank Q2 Net Advances Drop 8 Percent Deposits Fall

  • Net advances dropped 8% YoY to Rs 3.27 lakh crore with 2% sequential decline
  • Deposits fell 5% YoY to Rs 3.89 lakh crore showing continued pressure
  • Net profit plunged 68% to Rs 684 crore from Rs 2,152 crore last year
  • CASA ratio weakened to 30.80% from 35.90% a year earlier indicating deposit mix challenges
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IndusInd Bank's Q2 net advances drop 8 pc, deposits decline 5 pc

IndusInd Bank reports 8% decline in net advances and 5% drop in deposits for Q2 FY26, with profit plunging 68% and NII down 14.2% year-on-year.

IndusInd Bank's Q2 net advances drop 8 pc, deposits decline 5 pc
"Net deposits fell to Rs 3.89 lakh crore -- reflecting a 5 per cent decline YoY and a 2 per cent drop quarter-on-quarter - IndusInd Bank Exchange Filing"

Mumbai, Oct 5

Private sector lender IndusInd Bank has reported a sharp decline in its business performance for the second quarter of financial year 2025-26 (Q2 FY26), with both advances and deposits falling year-on-year (YoY) and sequentially (QoQ).

The bank’s net advances stood at Rs 3.27 lakh crore, down 8 per cent compared with the same period previous fiscal and 2 per cent lower than the previous quarter (Q1 FY26), according to its stock exchanges filing.

Net deposits also fell to Rs 3.89 lakh crore -- reflecting a 5 per cent decline YoY and a 2 per cent drop quarter-on-quarter, the lender added in its filing.

IndusInd Bank’s Current Account and Savings Account (CASA) ratio weakened to 30.80 per cent, compared with 31.50 per cent in the previous quarter and 35.90 per cent a year ago.

Meanwhile, the lender posted a net profit of Rs 684 crore for the quarter ended June 2025 (Q1 FY26), a steep 68 per cent decline from Rs 2,152 crore in the same quarter last year (Q1 FY25).

Net interest income (NII) came in at Rs 4,640 crore, dropped 14.2 per cent compared with Rs 5,408 crore a year ago.

The bank’s net interest margin (NIM) improved sequentially to 3.46 per cent from 2.25 per cent in the previous quarter but remained below 4.25 per cent recorded a year earlier.

Asset quality showed mixed trends in the previous quarter of the current financial year.

While slippages improved sequentially, gross non-performing assets (GNPAs) rose to 3.64 per cent from 3.1 per cent in the previous quarter, and net NPAs increased to 1.12 per cent from 0.95 per cent.

The Provision Coverage Ratio (PCR) stood at 70 per cent, as per its earlier filing.

Shares of IndusInd Bank ended at Rs 747.55 on the BSE on Friday, up Rs 3.85, or 0.52 per cent.

- IANS

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Reader Comments

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Priya S
As someone who banks with IndusInd, this makes me anxious about the safety of my deposits. The falling CASA ratio shows people might be losing confidence. Should I consider moving my savings elsewhere?
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Arjun K
The NIM improvement from 2.25% to 3.46% is the only silver lining here. But overall, these results are disappointing. Hope the management has a solid turnaround strategy for the coming quarters.
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Sarah B
I've been holding IndusInd shares for 3 years, and this quarter's performance is quite disappointing. The market seems to have priced this in already with the small stock movement. Time to review my portfolio allocation.
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Vikram M
The banking sector overall is facing challenges, but IndusInd's numbers seem worse than peers. The 5% deposit decline when other banks are growing deposits is concerning. RBI should keep a close watch.
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Michael C
While the results are disappointing, let's not panic. Banks go through cycles. The sequential NIM improvement shows they're working on profitability. The key will be how they manage asset quality going forward.

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