IndusInd Bank reports surprise Q2 loss, provisions rise sharply

IndusInd Bank posted a net loss of ₹444.8 crore for the September quarter, compared with a profit of ₹1,325.5 crore in Q2 FY25 and below a CNBC-TV18 poll estimate of ₹309 crore.

The bank’s net interest income (NII) declined 17.5% YoY to ₹4,409.3 crore, from ₹5,347 crore a year ago.

Asset quality improved modestly, with gross non-performing assets (GNPA) at ₹12,057.8 crore, down from ₹12,480.6 crore in Q1 FY26, translating into a gross NPA ratio of 3.60%, versus 3.64% in the previous quarter.

Net NPAs

fell to ₹3,399.4 crore, with a net NPA ratio of 1.04%, compared with 1.12% in Q1 FY26.

Provisions surged to ₹2,622.4 crore, up from ₹1,737.8 crore in Q1 FY26 and ₹1,820.1 crore in Q2 FY25, reflecting higher credit costs during the quarter.