IndusInd Q3 net profit drops 90% on MFI stress, aims for system-level growth in FY27

IndusInd Bank on Friday reported a sharp 90 per cent year-on-year fall in net profit to Rs 127.98 crore for the December quarter, impacted by higher stress in its microfinance portfolio and a contraction in its loan book under the new management.

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The lender had reported a loss of Rs 437 crore in September quarter.

Managing Director and Chief Executive Rajiv Anand said the bank has begun “tight-sizing” its balance sheet by shedding inefficient assets and high-cost liabilities such as bulk deposits, with growth expected to align with the system from FY27. Net interest income declined 13 per cent to Rs 4,562 crore, reflecting a 13 per cent fall in advances. The loan book shrank 13 per cent year-on-year and 3 per cent sequentially.