Daijiworld Media Network - Mumbai

Mumbai, Oct 5: Private lender IndusInd Bank witnessed a notable drop in its business performance during the second quarter of the 2025-26 financial year. Net advances fell to Rs 3.27 lac crore, down 8% year-on-year and 2% quarter-on-quarter, while net deposits dropped 5% YoY to Rs 3.89 lac crore and declined 2% from the previous quarter, according to the bank’s stock exchange filing.

The Current Account and Savings Account (CASA) ratio also weakened to 30.8% from 31.5% in the preceding quarter and 35.9% a year earlier.

The bank posted a net profit of Rs 684 crore for Q1 FY26, marking a sharp 68% decline from Rs 2,152 crore in the same quarter last year. Net interest income (NII) fell 14.2% to ?4,640 crore compared to the previous year.

However, the net interest margin (NIM) improved sequentially to 3.46% from 2.25%, though it remained below the 4.25% recorded a year ago.

Asset quality showed mixed signals as gross non-performing assets (GNPAs) rose to 3.64% from 3.1% last quarter, and net NPAs increased to 1.12% from 0.95%. Slippages, however, showed sequential improvement. The Provision Coverage Ratio (PCR) stayed steady at 70%.

IndusInd Bank’s shares closed at Rs 747.55 on the BSE, up 0.52%.