IndusInd Bank Q3 results: Net profit falls 39% to ₹1,402 crore as asset quality declines

The drop in the bank’s net profit comes on the back of a fall in its asset quality as Gross Non-Performing Assets (GNPAs) increased and the capital adequacy ratio decreased.

The bank’s Net Interest Income (NII) also fell by 1.28% YoY to stand at ₹5,228.1 crore, compared to ₹5,295.6 crore in the third quarter of the financial year 2024-25.

Asset Quality

IndusInd Bank witnessed a drop in its asset quality as its GNPAs rose 9.66% to ₹8,375.3 crore from ₹7,638.5 crore in the previous quarter.

Furthermore, the bank’s capital adequacy ratio shrunk to 16.46% as of December 31, 2024, in contrast to 17.86 % as of December 31, 2023.

“The Indian macro indicators suggest stability in economic activity levels after the slowdown in Q2. This was also reflected in the sharp recovery in the retail disbursements of the Bank. Consequently, the Bank’s loan book grew by 12% YoY. The Bank maintained momentum on retail deposits growing at 14% YoY and overall deposits growing at 11% YoY,” Sumant Kathpalia, IndusInd’s Managing Director and CEO commented.

The operating profits and net profits were stable at ₹3,601 crore (flat QoQ) and ₹1,402 crores (up 5% QoQ) respectively. The Bank remains watchful of asset quality trends in unsecured businesses and will calibrate growth accordingly. The Bank is well positioned to benefit from any fiscal and regulatory measures supporting rural as well as overall economic activity through its vehicle and microfinance businesses." Kathpalia further stated.

Shares of IndusInd Bank closed in the green at ₹995.20, up 3.99% on the National Stock Exchange (NSE) on Friday, January 31. However, the results were announced after market hours.

The bank has a total market cap of ₹77,531.22 crore as of January 31, 2025, on the NSE.