IndusInd Bank reported a net loss of 436.8 crores in the second quarter of the financial year 2025-26. Last year, the bank posted a net profit of Rs 1,331 crore in Q2 FY25. Rajiv Anand, the MD and CEO of IndusInd Bank, said in a statement that the loss in the quarter is a result of accelerated write-offs as well as increased provisions on microfinance as a prudent measure.
IndusInd Bank reported a 17.5 per cent YoY Net Interest Income decline in the quarter. The bank’s NII in Q2 FY26 came down to Rs 4,409 crore from Rs 5,347 crore in Q2 FY25.
Furthermore, IndusInd Bank’s margins also squeezed in the quarter. The private sector bank’s margin in Q2 FY26 stood at 3.32 per cent, compared to 4.08 per cent in the same quarter of last fiscal year.
IndusInd Bank balance sheet
The bank found itself in the midst of a crisis earlier this year as governance and accounting lapses surfaced, leading to the exit of its former CEO, Sumant Kathpalia and deputy Arun Khurana.
The bank took a $230 million hit to its accounts and posted its largest-ever loss in the quarter ended March. It swung back to profitability in the June quarter and veteran banker Rajiv Anand took over as chief executive at the end of August.
The financial impact of the discrepancies has been completely accounted for, Anand said.
For the quarter ended September, the bank increased its provisions and contingencies by 44 per cent to 2622 billion rupees as the lender continued to build buffers.
Yes Bank’s loan book declined 9 per cent over the year ago, and deposits fell 6%. The bank has chosen to step up provisions against microloans, where the industry has seen signs of stress, Anand said.
