Private sector lender IndusInd Bank returned back to profitability in Q3FY26, posting ₹128 crore profit after tax on Friday. The lender had reported a net loss of ₹437 crore in Q2FY26 as provisions soared in the previous quarter. On a year-on-year (y-o-y) basis, the bank’s net profit was down 91 per cent.
The bank’s net interest income (NII) rose 3 per cent sequentially but was down 13 per cent y-o-y in Q3 at ₹4,562 crore. Its other income also rose 3 per cent sequentially but was down 28 per cent on-year to ₹1,707 crore in Q3. Net interest margin, excluding one-offs, stood at 3.35 per cent in Q3 versus 3.32 per cent in last quarter. The lender expects NIM to remain range-bound in Q4.
Overall advances of the lender de-grew 13 per cent y-o-y to ₹3.17 lakh crore, while deposits fell 4 per cent on-year to ₹3.93 lakh crore. IndusInd Bank aims to grow its advances and deposits on par with the banking industry in FY27, and will grow its deposits at a faster pace than credit, MD & CEO Rajiv Anand told reporters in a post-earnings conference. He said the bank will focus on building its low-cost deposit base from hereon.
Gross slippages of the bank rose to ₹2,560 crore in Q3 from ₹2,537 crore last quarter. A chunk of slippages arose out of micro loan and vehicle finance book. Write-offs also increased to ₹2,612 crore in Q3 from ₹2,517 crore in Q2. Gross non-performing asset (GNPA) ratio of the bank stood at 3.56 per cent in Q3, 4 basis points (bps) lower on quarter, while net NPA ratio was flat sequentially at 1.04 per cent.
The bank said it has appointed Arijit Basu,former MD at SBI and former chairman of HDB Financial Services, as its new chairman in place of Sunil Mehta, who retires at the end of January. The banking regulator has approved a 3-year term for Basu. ENDS
Published on January 23, 2026
