IndusInd Bank Q1 result: Net profit declines over 68% YoY to ₹684 crore; asset quality falls

IndusInd Bank on Monday, July 28, reported a 68.21% year-on-year (YoY) decline in its standalone net profit to ₹684.25 crore in the first quarter of the 2025-26 financial year (Q1FY26).

In the corresponding period a year ago, its net profit stood at ₹2,152.16 crore. The bank had reported a net loss of ₹2,236 crore in the previous quarter (Q4FY25).

Its net interest income (NII) stood at ₹4,640 crore in the June FY26 quarter, falling 14.20% YoY from ₹5,408 crore in Q1FY25. Its net interest margin (NIM) contracted to 3.46% from the 4.25% it had reported in the year-ago period.

The bank's asset quality declined both YoY and sequentially. In Q1FY26, its gross non-performing asset (GNPA) was at 3.64%, compared to 2.02% in the same period last fiscal year and 3.13% in Q4FY25. Its net NPA increased to 1.12%, as against 0.20% YoY and 0.95% quarter-on-quarter (QoQ) basis.

Its total capital adequacy ration, for the quarter under reivew, stood at 16.63% as of June 30, 2025, compared to 17.04% in the same period last year. Its tier 1 CRAR ((Capital to Risk-weighted Assets Ratio) was at 15.48% in Q1FY26, as against 15.64% as on June 30, 2024. Its risk-weighted assets were at ₹4.10 lakh crores as against ₹3.89 lakh crores a year ago.

Commenting on the performance, Sunil Mehta, the Chairman of the Board of Directors, IndusInd Bank said: "The Bank has delivered clean and profitable Q1 results, marking a robust recovery from the challenges of the previous quarter. Leadership transition is progressing well, with our final recommendations being submitted to the regulator. The Board remains confident of moving forward as per planned timelines. The Committee of Executives has ensured seamless continuity and effective execution during this phase. The Bank has taken decisive action on legacy issues, strengthened governance, and enhanced operational controls."

IndusInd Bank’s distribution network included 3,110 branches or banking outlets and 3,052 onsite and offsite ATMs at the end of the quarter under review, as against 3,013 branches or banking outlets and 2,988 onsite and offsite ATMs a year ago. Its client base stood at approx. 42 million as of June 30, 2025.

"The Bank’s Q1 performance reflects the resilience of our core businesses and financial transparency. We returned to profitability with a net profit of ₹604 crore (consolidated), supported by steady recovery in core businesses and calibrated actions on cost optimization. Our capital adequacy remains strong with CRAR at 16.63% (excluding Q1 profits), reflecting a solid balance sheet and foundation. Our focus remains on unlocking profitability, enhancing operational efficiency, and deepening stakeholder trust. We are confident that the initiatives being worked on will help the Bank to build on the momentum in the coming quarters," said a joint statement from Mr Soumitra Sen and Anil Rao, the members of the Committee of Executives of IndusInd Bank.

IndusInd Bank has been reeling under a slew of issues stemming from alleged irregularities of the management in recognising bad loans and trading reversals.

Shares of the bank cloded 2.93% lower at ₹799.60 apiece on the National Stock Exchange (NSE). However, the earnings were declared after the market closed.

IndusInd Bank has a total market capitalisation of ₹62,293.31 crore, as of July 28, 2025, as per data on the NSE.