IndusInd Bank Q1FY26 Results: Balance Sheet Grew, While Asset Quality Dented

On July 29, 2025, IndusInd Bank shares will be on investors’ radar as the bank had released its results for the quarter ended June 30, 2025. During the period, the bank returned to profitability on a quarterly basis, making the IndusInd Bank shares a prime watch for the trading session today.

For Q1FY26, the bank reported a Net Interest Income (NII) of ₹4,640 crores, down from ₹5,408 crores in Q1 FY25. Fee and other income also saw a decline, standing at ₹2,157 crores compared to ₹2,442 crores in the same quarter last year. Consequently, total income—comprising interest and fee income—stood at ₹14,421 crores, slightly lower than ₹14,988 crores in Q1 FY25. The yield on assets for the quarter declined to 9.15%, from 9.87% a year earlier, while the cost of funds increased marginally to 5.69% from 5.62%. Net Profit for the quarter stood at ₹604 crores against ₹2,171 crores for corresponding Q1 FY25.

Balance Sheet Size Saw a Modest Growth

As of June 30, 2025, the bank’s balance sheet size reached ₹5,39,552 crores, reflecting a modest 2% year-on-year growth from ₹5,30,165 crores. Deposits stood at ₹3,97,144 crores, slightly lower than ₹3,98,513 crores in the previous year, with CASA deposits making up 31.48% of the total at ₹1,25,006 crores—including ₹33,892 crores in Current Account and ₹91,113 crores in Savings Account deposits. Advances declined to ₹3,33,694 crores from ₹3,47,898 crores a year ago.

Asset Quality Slipped: GNPA Rose to 3.64%

In terms of asset quality, the bank’s Gross NPA ratio rose to 3.64% as of June 30, 2025, compared to 3.13% as of March 31, 2025, while Net NPA increased to 1.12% from 0.95% during the same period. The Provision Coverage Ratio remained stable at 70%. Provisions and contingencies for the quarter totaled ₹1,760 crores, down from ₹2,522 crores in Q4 FY25. The total loan-related provisions as of June 30, 2025, stood at ₹10,472 crores, accounting for 3.14% of the loan book.

Also Read: Shriram Finance Share Price Rose 3.26%; Profit Rises 8.8% YoY; AUM Jumps 16.6% in Q1 FY26 Results

Commenting on the performance, Mr. Sunil Mehta, the Chairman of the Board of Directors, IndusInd Bank said: The Bank has delivered clean and profitable Q1 results, marking a robust recovery from the challenges of the previous quarter. Leadership transition is progressing well, with our final recommendations being submitted to the regulator.

The Board remains confident of moving forward as per planned timelines. The Committee of Executives has ensured seamless continuity and effective execution during this phase. The Bank has taken decisive action on legacy issues, strengthened governance, and enhanced operational controls. The Bank is also actively working to integrate its diverse business lines under the ‘One IndusInd’ approach, unlocking synergies and delivering a unified banking experience to our customers.

The Bank remains focused on profitability, cost discipline, and stakeholder engagement, while building a sustainable franchise across our core businesses. These results reflect our commitment to transparency, resilience, and long-term value creation for all our stakeholders.”

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