IndusInd Bank posted a steep 72% year-on-year (YoY) decline in net profit to ₹604 crore for the first quarter of FY26, as seen in the latest investor presentation. The fall comes despite a 52% quarter-on-quarter (QoQ) jump in net interest income (NII), which stood at ₹4,640 crore — still reflecting a 14% YoY drop.
The bank’s total income came in at ₹6,797 crore, down 13% YoY but showing an 81% sequential rise. Total other income for the quarter rose 204% QoQ to ₹2,157 crore but was down 12% YoY.
On the asset side, loans declined 4% YoY to ₹3.33 lakh crore, while deposits were steady YoY at ₹3.97 lakh crore. CASA fell 14% YoY to ₹1.25 lakh crore, while term deposits rose 8% to ₹2.72 lakh crore.
Key profitability metrics weakened significantly. Net interest margin (NIM) dropped 79 bps YoY to 3.46%, while Return on Assets (RoA) declined to 0.45% from a stronger 1.7% a year ago. Return on Equity (RoE) tumbled by 981 bps YoY to 3.71%. Cost-to-income ratio spiked to 62.23%, up 1,257 bps from the previous year.
On asset quality, Net NPA stood at 1.12%, up 52 bps YoY.
The dismal bottom-line performance appears to reflect a mix of elevated costs, margin compression, and weaker loan growth — despite some sequential recovery in operating performance.
