IndusInd Bank (INDUSINDBK) Q2 25/26 earnings summary

Executive summary

• Leadership transition with Rajiv Anand as new MD & CEO, supported by a refreshed senior management team, aiming to leverage strengths and address improvement areas.

• Fifth largest private bank with a large distribution network, serving 42 million customers across India with a universal banking approach and diversified loan/deposit mix.

• Digital transactions account for 93% of total, with strong growth in digital DIY assets and retail savings accounts.

• Unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2025, were approved by the Board on October 18, 2025, following a limited review by joint statutory auditors, who issued unqualified conclusions on both sets of results.

• Board and management team bring extensive experience across banking, risk, and technology.

Financial highlights

• Net loss for Q2 FY26 was INR 437 crores (Rs. 43,688 lakhs) on a consolidated basis, compared to a profit of INR 1,331 crores (Rs. 133,129 lakhs) in Q2 FY25, driven by accelerated provisions and write-offs in microfinance.

• Net interest income at INR 4,409 crores, with NIM at 3.32% (down 76 bps YoY and 14 bps QoQ).

• Gross NPA and Net NPA at 3.6% and 1.04% respectively, with provision coverage ratio at 72%.

• Loans stood at INR 3,25,881 crores, down 9% YoY and 2% QoQ; deposits at INR 3,89,600 crores, down 6% YoY and 2% QoQ.

• Operating profit declined 43% YoY and 20% QoQ; provisions and contingencies rose 45% YoY and 50% QoQ.

Outlook and guidance

• Focus on consolidating the balance sheet, cautious approach in microfinance, and steady retail deposit base.

• Expectation of continued demand momentum in vehicle finance, aided by festive season and economic activity.

• Medium-term goal to achieve 1% ROA, with focus on cost reduction, productivity, and portfolio diversification.

• Board and management are focused on strengthening internal controls, minimizing manual entries, and enhancing oversight following the identification of past discrepancies.

• Continued execution of Digital 2.0 strategy and leveraging digital partnerships.