IndusInd Bank (INDUSINDBK) investor relations material

Executive summary

• Focused on restoring trust, resolving legacy issues, and ensuring business continuity after prior period irregularities; legacy financial impact now absorbed and behind.

• CEO succession process is on track, with regulatory approval pending; senior management hiring ongoing, amid board and management transitions.

• Q1 FY26 saw significant declines in profitability, with net profit down 72% year-over-year, but sequential improvement from Q4 losses.

• The bank maintains a diversified loan portfolio, strong digital adoption, and robust capital adequacy with CRAR at 16.63%.

• Asset quality remains stable in most segments, but GNPA and NNPA ratios increased year-over-year.

Financial highlights

• Q1 profit after tax at INR 604 crores (₹60,407 lakh consolidated), down 72% year-over-year, but improved sequentially from Q4 loss.

• Net interest income at INR 4,640 crores, down 14% year-over-year but up 52% sequentially; NIM at 3.46%.

• Non-interest/other income at INR 2,157 crores, down 12% year-over-year but up 204% sequentially.

• Operating expenses contained at 9% year-on-year growth; cost-to-income ratio increased to 62.23% from 49.65% a year ago.

• Return on assets dropped to 0.45% and return on equity to 3.71% for Q1 FY26.

Outlook and guidance

• Expecting steady improvement in financial metrics each quarter; focus on secured lending, digital expansion, and cautious approach to microfinance.

• OpEx growth targeted at single digits year-on-year, aided by lower variable costs and completed tech investments.

• No specific guidance on loan growth or margins; management aims for consistent improvement.

• Strengthening internal controls and oversight following past discrepancies; Project Management Group established.

• Slippages in microfinance expected to normalize over the next three to six months.