IndusInd Bank reported a bigger-than-expected fourth-quarter profit, as the pace of additions to bad loans slowed, with provisions also dropping. The private lender posted a net profit of Rs 594 crores for Q4 FY26, as against a net loss of Rs 2,329 crores for the corresponding Q4 FY25.
The private sector lender reported a Net Interest Income of Rs 4,371 crores for the Q4 FY26, compared to Rs 3,048 crores in the corresponding quarter of the previous fiscal year.
The bank’s net revenue for Q4 FY26 was at Rs 6,085 crores as compared to Rs 3,757 crores for Q4 FY25. Its Operating expenses for the quarter were also trimmed to Rs 3,790 crores as against Rs 4,248 crores for the corresponding period last year.
IndusInd Bank Asset Quality
IndusInd Bank’s asset quality improved, with gross bad loans as a percentage of total loans dropping to 3.43% at the end of March from 3.56% three months earlier.
The bank’s loan and deposit growth have remained under pressure over the last year. During the fourth quarter, IndusInd Bank’s loans declined 8% year-on-year, marking the fourth straight decline, while deposits fell 3%.
“At IndusInd Bank, we are seeing improved growth momentum across businesses, supported by focused execution and strengthening fundamentals. In our microfinance portfolio, lower slippages during the quarter have contributed to better asset quality”, CEO Rajiv Anand said.
IndusInd Bank’s balance sheet footage as on March 31, 2026, was Rs 5,43,394 crores as against Rs 5,54,107 crores as on March 31, 2025.
Previous setbacks at IndusInd
The bank came under scrutiny last year after disclosing a $230 million hit in the year ended March 2025 due to misaccounting of internal derivative trades, which raised concerns over governance and led to the resignations of former CEO Sumant Kathpalia and deputy chief Arun Khurana.
Rajiv Anand, who was appointed CEO in August, said in October that the lender planned to grow in segments that typically face less stress.
The bank has also proposed the appointment of Ganesh Sankaran, Head of Wholesale Banking, and Jagdeep Mallareddy, Head of Consumer Banking, as Executive Directors (designate) on the Board.