{"id":177483,"date":"2026-01-23T13:37:44","date_gmt":"2026-01-23T18:37:44","guid":{"rendered":"https:\/\/alphastreet.com\/india\/?p=177483"},"modified":"2026-01-26T12:54:03","modified_gmt":"2026-01-26T17:54:03","slug":"indusind-bank-q3-fy26-earnings-profit-plunges-margins-under-pressure","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/indusind-bank-q3-fy26-earnings-profit-plunges-margins-under-pressure\/","title":{"rendered":"IndusInd Bank Q3 FY26 Earnings: Profit Plunges, Margins Under Pressure"},"content":{"rendered":"\n

Quarterly Financial Summary<\/h2>\n\n\n\n

IndusInd Bank (NSE: INDUSINDBK) reported a consolidated net profit of \u20b9128 crore for the quarter ended 31 December 2025. This represents a 91% decline compared to \u20b91,402 crore in the corresponding quarter of the previous year. On a sequential basis, the bank returned to profit following a loss of \u20b9437 crore in Q2 FY26.<\/p>\n\n\n\n

Revenue and Margins<\/h2>\n\n\n\n

\u2022 Net Interest Income (NII): Declined 13% year-on-year to \u20b94,562 crore.<\/p>\n\n\n\n

\u2022 Total Income: Stood at \u20b96,269 crore, down 17% from \u20b97,583 crore in Q3 FY25.<\/p>\n\n\n\n

\u2022 Net Interest Margin (NIM): Reported at 3.52%, compared to 3.93% in the same period last year.<\/p>\n\n\n\n

\u2022 Operating Profit: Decreased by 37% year-on-year to \u20b92,270 crore.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Asset Quality and Provisions<\/h2>\n\n\n\n

Asset quality metrics showed significant year-on-year stress. Gross Non-Performing Assets (GNPA) rose to 3.56% (\u20b911,605 crore) from 2.25% in Q3 FY25. Net NPA (NNPA) stood at 1.04% (\u20b93,304 crore) against 0.68% a year ago. The Provision Coverage Ratio (PCR) remained stable at 72%.<\/p>\n\n\n\n

Provisions and contingencies for the quarter were \u20b92,096 crore, a 20% increase from \u20b91,744 crore in the year-ago period. The bank noted that slippages remained stable, excluding micro-loans, which showed improvement in early buckets.<\/p>\n\n\n\n

Balance Sheet and Operations<\/h2>\n\n\n\n

The bank continued a recalibration of its balance sheet, releasing bulk deposits and lower-return loans.<\/p>\n\n\n\n

\u2022 Advances: Total advances declined 13% year-on-year to \u20b93,17,536 crore.<\/p>\n\n\n\n

\u2022 Deposits: Total deposits fell 4% year-on-year to \u20b93,93,815 crore.<\/p>\n\n\n\n

\u2022 CASA Ratio: Current Account (CA) deposits dropped 32% YoY, while Savings Account (SA) deposits fell 10% YoY.<\/p>\n\n\n\n

\u2022 Employee Costs: Included a one-off impact of \u20b9228.96 crore due to the notification of New Labour Codes.<\/p>\n\n\n\n

Growth Context<\/h2>\n\n\n\n

For the nine months ended 31 December 2025 (9M FY26), net profit stood at \u20b9295 crore, a 94% decrease from \u20b94,904 crore in 9M FY25. Operating profit for the nine-month period declined 38% to \u20b96,884 crore.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Quarterly Financial Summary IndusInd Bank (NSE: INDUSINDBK) reported a consolidated net profit of \u20b9128 crore for the quarter ended 31 December 2025. This represents a 91% decline compared to \u20b91,402 crore in the corresponding quarter of the previous year. On a sequential basis, the bank returned to profit following a loss of \u20b9437 crore in […]<\/p>\n","protected":false},"author":2401,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5,1941,1],"tags":[151,8265,11130],"class_list":["post-177483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-stock-analysis","category-finance-stocks","tag-banking","tag-finance","tag-microfinance"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":140229,"url":"https:\/\/alphastreet.com\/india\/indusind-bank-limited-q3-fy23-consolidated-net-profit-jumped-by-58\/","url_meta":{"origin":177483,"position":0},"title":"IndusInd Bank Limited Q3 FY23; Consolidated Net Profit Jumped By 58%","author":"Hardik Bhandare","date":"February 6, 2023","format":false,"excerpt":"IndusInd Bank Limited (NSE: INDUSINDBK) reported Total Income for Q3 FY23 of \u20b911,533.89 Crore, a growth of 20% year on year. 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