IndusInd Bank (INDUSINDBK) Q3 25/26 earnings summary

Executive summary

• Focused on right-sizing the balance sheet, retailization, digital innovation, and robust asset/liability management, with growth capital allocated to core areas.

• Leadership team strengthened with key hires across wholesale banking, HR, data, MSME, and digital, and a new 3-year strategic roadmap (PACE) for execution excellence.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on January 23, 2026, with an unqualified review report from joint statutory auditors.

• Fifth largest private bank with a diversified loan book and 42 million customers.

• Results include IndusInd Bank, Bharat Financial Inclusion Limited (subsidiary), and IndusInd Marketing and Financial Services Private Limited (associate).

Financial highlights

• Pre-provision operating profit for Q3 FY26 at ₹2,26,962 lakhs, up 11% quarter-on-quarter, but down from ₹3,60,065 lakhs in Q3 FY25.

• Net interest income at ₹4,562 crore; reported NIM at 3.52%, normalized NIM at 3.35% after adjusting for one-offs.

• Net profit for Q3 FY26 was ₹12,798 lakhs, rebounding from a net loss of ₹43,688 lakhs in Q2 FY26, but down from ₹1,40,233 lakhs in Q3 FY25.

• Provisions and contingencies for Q3 FY26 were ₹2,09,577 lakhs; loan write-offs of ₹2,612 crore in the quarter.

• Cost of deposits improved to 6.09%, down 14 bps quarter-on-quarter.

Outlook and guidance

• Intends to grow in line with industry by FY27, targeting 1% ROA by the end of that year.

• Focus on sustainable normalization in microfinance, with growth expected to resume from Q4 onwards.

• No immediate need for capital raise; current capital levels sufficient for the next 12–18 months.

• Continued focus on cost optimization, digital expansion, and granular retail deposit growth.

• The bank is monitoring the impact of new Labour Codes and has recognized an additional ₹228.96 crore in employee costs for the quarter and nine months ended December 31, 2025.