For the full year FY26, the bank reported a profit of ₹889 crore, compared with ₹2,575 crore in FY25 – a decline of 65%.
“We are seeing improved growth momentum across businesses, supported by focused execution and strengthening fundamentals,” said Rajiv Anand, MD and CEO of IndusInd Bank. “In our microfinance portfolio, lower slippages during the quarter have contributed to better asset quality. We believe this reflects stronger underlying discipline and is not a one-off improvement. Our focus remains on sustaining this through prudent underwriting, calibrated risk management and consistent execution.”
Anand said the derivatives episode is now behind the bank, with all impacts fully accounted for and the necessary clean-up completed. He added that the bank is expected to transition to a growth phase from 2026-27 onward.
Net interest income (NII) rose 43% to ₹4,371 crore during the quarter, up from ₹3,048 crore a year earlier. Net interest margin (NIM) improved to 3.39%, compared with 2.25% in the same period last year.
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Total advances declined 11% year-on-year to ₹3.12 lakh crore, from ₹3.52 lakh crore. The large corporate book shrank 25% to ₹46,587 crore, while the rural banking portfolio fell 29% to ₹32,048 crore. Retail loans dipped 4% to ₹1.62 lakh crore. Within retail, home loans grew 45% year-on-year to ₹6,510 crore, while vehicle loans rose 4% to ₹99,876 crore.
Total deposits fell 5% to ₹3.8 lakh crore, compared with ₹3.99 lakh crore in the same period last year.Asset quality weakened slightly, with the gross NPA ratio rising to 3.43% as of March 2026, from 3.13% a year earlier. However, gross slippages were contained at ₹1,825 crore, significantly lower than ₹5,014 crore in the year-ago quarter. Provisions declined 41% to ₹1,482 crore compared with ₹2,522 crore a year earlier.
Anand noted that strong underwriting by the credit team has enabled the bank to significantly curb fresh slippages.
The bank’s capital adequacy position improved marginally, with its capital to risk-weighted assets ratio (CRAR) at 17.48%, up from 16.24% a year ago.
“The balance sheet remains well supported, with strong liquidity,” Anand said. “While geopolitical uncertainties persist, India’s growth outlook remains stable, and we remain focused on participating in this growth in a prudent and sustainable manner.”
The bank has proposed appointments of Ganesh Sankaran, head of wholesale banking, and Jagdeep Mallareddy, head of consumer banking, as executive directors (designate) on its board, subject to RBI and shareholder approvals.