IndusInd Bank Q3 business updates: Shares rise over 2%; check what analysts said

In Q3 FY26, the private sector lender’s net advances declined 13.1% year-on-year (YoY) to ₹3.18 lakh crore as compared to ₹3.66 lakh crore in the same period of the previous fiscal year. Sequentially, it slipped 2.2%.

The bank’s deposits also slipped to ₹3.94 lakh crore as against ₹4.09 lakh crore, registering a fall of 3.8% YoY. On a quarter-on-quarter basis, it has lost 1.1%.

“Retail Deposits and Deposits from Small Business Customers amounted to ₹184,550 crore as of 31 December 2025 (30 September 2025: ₹184,144 crore; 31 December 2024: ₹188,731 crore),” IndusInd Bank said in a regulatory filing.

Its current account and savings account deposits (CASA) ratio dropped 30.3% in the reporting quarter from 34.9% in Q3 FY25.  

Here’s what analysts said

In a note on Tuesday, Jefferies analysts said that during the December quarter, IndusInd Bank reported a 13% YoY and 2% quarter-on-quarter decline in loans, reflecting consolidation in the corporate lending and microfinance segments. They added that the auto and SME segments are showing signs of an uptick.

“While the bank will consolidate in FY26, we expect improvement in FY27 as the new team takes charge under the new CEO,” analysts noted.

Further, Nomura analysts said that IndusInd Bank’s pre-Q2 FY26 update pointed to weak loan and deposit growth. They believe the lender is undergoing a significant overhaul of its processes, senior management and strategy.

IndusInd Bank share price

At 11:20 PM, shares of IndusInd Bank were trading at ₹916.50 apiece on the National Stock Exchange (NSE), rising 2.06%.

The private sector bank’s shares have risen over 9% in the past month and gained 7.6% in the last six months. On a year-on-year basis, the stock has lost more than 5%. The lender currently has a market capitalisation of ₹71,491.91 crore.

Shares of the bank had touched their one-year high of ₹1,086.55 apiece on February 7, 2025, while their 52-week low of ₹606 was hit on March 12, 2025.

IndusInd Bank’s Q2 earnings

IndusInd Bank had reported a net loss of ₹437 crore in its consolidated net profit for the quarter ended September 30, 2025 (Q2 FY26), as compared to a net profit of ₹1,331 crore in the same quarter of the previous fiscal year.  

The bank had reported a net profit of ₹604 crore in the previous quarter (Q1 FY26).

Its net interest income (NII) for Q2 FY26 dropped 17.5% year-on-year (YoY) to ₹4,409 crore as against ₹5,347 crore in the corresponding quarter of FY25. For Q2 FY6, the net interest margin (NIM) stood at 3.32% as compared to 4.08% for Q2 FY25.

As of September 30, 2025, the lender’s gross NPA stood at 3.60% of gross advances, slightly lower than the 3.64% recorded on June 30, 2025. Net NPA also improved to 1.04% of net advances, down from 1.12% at the end of the previous quarter.