IndusInd Bank reports Rs 1,242 cr net profit for Q2, aims to widen margins

Mumbai, Oct 23 (PTI) Private sector lender IndusInd Bank on Friday reported a Rs 1,242 crore net profit for the September quarter.

The lender recorded a net loss of Rs 437 crore in the year-ago period.

The post-tax net profit in the second quarter was 20 per cent higher than the Rs 1,037 crore it had reported for the preceding June quarter.

Its core net interest income rose 4 per cent to Rs 4,569 crore but slipped 2 per cent quarter-on-quarter, according to the bank.

Its advances grew 11 per cent quarter-on-quarter while the net interest margin contracted by 0.34 per cent to 3.23 per cent.

The other income was down 2 per cent quarter-on-quarter to Rs 4,569 crore.

Its chief executive and managing director Rajiv Anand said the bank’s USD 3.51 billion

in FCNR(B) deposit mop-up hurt the NIMs in Q2, but expressed confidence of recouping as the share of retail advances is going up, alongside RBI’s rate hikes.

It has chosen to replace higher-cost borrowings with the FCNR(B) money, and will deploy more on advances as and when it feels necessary, Anand said, adding that at present, the liquidity situation is comfortable to take care of loan growth.

Dismissing notions that the over Rs 16,000 crore in FCNR(B) ‘related loans’ banks had been given the option to lend against the deposits were the prime mover for advances growth during the quarter, a senior official said that even excluding the diaspora angle, wholesale banking was up 10 per cent quarter-on-quarter and retail was up 4 per cent.

Anand said the bank does not see any stress on its rural banking portfolio because of challenges around rains, but it will be extremely cautious and calibrated in growing its microfinance book.

Its gross non-performing assets ratio improved to 2.73 per cent against 3.25 per cent in the quarter-ago period, while the overall provisions at Rs 1,223 crore were down 12 per cent quarter-on-quarter and 54 per cent year-on-year.

Peers’ concerns on gold lending will not prompt a review of the strategy on this aspect, he said, attributing the stance to the relatively smaller size of the book for the bank.

IndusInd Bank plans to add 100 branches to its present network of 3,139 during the remainder of the fiscal year ending in March 2027, Anand said.

Its overall capital adequacy ratio stood at 16.59 per cent as of September 2026, with the core buffer level at 15.55 per cent.

The bank scrip closed 1.76 per cent down at Rs 835 apiece on the BSE on Friday, against a 0.17 per cent correction on the benchmark. PTI AA BAL

BAL