IndusInd Bank Q1 Update: Net advances decline 2%, deposits up 5% YoY

Private sector lender IndusInd Bank Ltd on Friday (July 3) reported a 2.3% year-on-year decline in net advances to ₹3,26,171 crore as of June 30, 2026, according to its Q1 FY27 business update.

On a sequential basis, net advances rose 3.3% compared with ₹3,15,871 crore in March 2026. Total deposits increased 4.5% year-on-year to ₹4,14,992 crore, and were up 3.8% quarter-on-quarter from ₹3,99,931 crore.

The bank reported that retail deposits and deposits from small business customers stood at ₹1,93,618 crore, compared with ₹1,91,263 crore in March 2026 and ₹1,84,623 crore in June 2025. The CASA ratio stood at 29.5%, down from 31.2% in March 2026 and 31.5% in June 2025.

ALSO READ | IndusInd Bank to make 5 credit card changes from June 15: Full list of new fees, interest rules

Fourth Quarter Results

For the quarter, net profit stood at ₹594.2 crore, beating the CNBC-TV18 poll estimate of ₹420.4 crore and marking a sharp recovery from a loss of ₹2,329 crore in the year-ago period.

Net interest income (NII) rose 43.4% year-on-year to ₹4,372 crore, broadly in line with estimates, reflecting improved lending activity and margins.

Asset quality improved sequentially, with gross non-performing assets (NPAs) declining to 3.43% from 3.56% in the previous quarter, while net NPAs eased to 1% from 1.04%.

ALSO READ | IndusInd Bank expands work-from-home framework, Yes Bank eyes wider hybrid model for non-customer facing roles

The bank’s pre-provision operating profit (PPOP) stood at ₹2,295 crore, compared to a loss of ₹491 crore in the corresponding quarter last year, indicating a turnaround in core operating performance.

On the balance sheet front, deposits increased to ₹3.99 lakh crore from ₹3.93 lakh crore in the previous quarter, while net worth rose to ₹62,867 crore.

Capital adequacy remained strong, with the total capital adequacy ratio (CRAR) at 17.48% as of March-end, up from 16.24% a year ago. Liquidity coverage ratio (LCR) stood at 118% for the quarter.

Shares of IndusInd Bank Ltd ended at ₹975.65, up by ₹32.20, or 3.41%, on the BSE.

ALSO READ | IndusInd Bank advances drop YoY but CASA shows sequential recovery in Q4 update