IndusInd Bank reports 8% decline in net advances, deposits fall 5% in Q2

Beleaguered private sector lender IndusInd Bank Ltd on Saturday (October 4) reported a contraction in its business performance for the second quarter, with both advances and deposits declining year-on-year and sequentially.

The bank’s net advances stood at ₹3.27 lakh crore, reflecting an 8% decline year-on-year and a 2% drop quarter-on-quarter. Similarly, net deposits fell 5% year-on-year and 2% quarter-on-quarter to ₹3.89 lakh crore.

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The lender’s Current Account and Savings Account (CASA) ratio also weakened during the quarter, declining to 30.80%, compared with 31.50% in the previous quarter and 35.90% a year earlier, indicating a shift away from low-cost deposits.

First Quarter Results

IndusInd Bank reported a 72% year-on-year decline in net profit to ₹604 crore for the quarter ended June 2025, compared with ₹2,171 crore a year ago. Despite the decline, the profit figure came in ahead of CNBC-TV18’s poll estimate of ₹525 crore.

Net interest income (NII) also beat expectations, coming in at ₹4,640 crore versus the estimated ₹4,207 crore. However, on a yearly basis, NII declined 14.2% to ₹5,408 crore. Net interest margin (NIM) improved sequentially to 3.46% from 2.25% in Q4, but was lower than the 4.25% recorded in the year-ago quarter.

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Despite the sequential improvement in slippages, asset quality indicators deteriorated. Gross non-performing assets (GNPAs) rose to 3.64% from 3.1% in the previous quarter, while net NPAs increased to 1.12% from 0.95%. The Provision Coverage Ratio (PCR) stood at 70%.

On Friday (October 3), shares of Indusind Bank Ltd ended at ₹747.55, up by ₹3.85, or 0.52%, on the BSE.