IndusInd Bank Returns to Profit in Q2 as Provisions Fall Sharply
IndusInd Bank swung to a 1,242 crore net profit in the September quarter from a year-earlier loss, as provisions fell 54% and asset quality improved.
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what happened
According to Moody's, private lender IndusInd posted a consolidated net profit of 1,242 crore for the quarter ended September, compared with a loss of 437 crore a year earlier. The main driver was a steep drop in provisions for credit stress, which fell 54% to 1,223 crore from 2,631 crore.
Net interest income grew 4% to 4,569 crore, while other income rose 36% to 2,248 crore. Fresh bad loans declined 42%. The gross NPA ratio dropped to 2.7% from 3.6%, and the net NPA ratio to 0.8% from 1.0%. Net interest margin, however, narrowed 9 basis points to 3.2%, which the bank linked to mobilising foreign currency FCNR-B deposits.
The loan book grew 11% to 3.6 lakh crore, and deposits rose 10% to 4.3 lakh crore.
why it matters
For investors the picture is mixed: asset quality and earnings improved markedly, but margins are under pressure. Profit growth came mainly from lower provisions rather than higher interest income, so the durability of these results will depend on how margins and lending develop.
market impact
IndusInd Bank and Indian banking sector: return to profit and lower provisions support the stock, margin pressure weighs
tags
instruments
sources
- IndusInd Returns to Black in Q2 as Provisions Halve — Moody's, 24 October 2026 at 04:14 UTC
- IndusInd Back in Black in Q2 as Provisions Halve — Moody's, 24 October 2026 at 04:14 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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