IndusInd Bank Q1 profit slumps 72%

Decline attributed to higher provisions for retail loans and lower income from operations

- SUBRATA PANDA

IndusInd Bank reported a 72 per cent year-on-year (Y-o-Y) decline in net profit to ₹604 crore in the first quarter of financial year 2025-26 (Q1FY26), due to higher provisions for retail loans, apart from lower income from both core and non-core operations.

In Q4FY25, the bank had reported a loss of ₹2,329 crore as it substantially ramped up provisions and reversed incorrectly booked revenue and income entries linked to accounting discrepancies in the derivatives and microfinance segments discovered during the quarter.

The bank's net interest income (NII) declined 14 per cent Y-o-Y during the April-June period to ₹4,640 crore due to shrinking loan book. Sequentially, NII was up 52 per cent. Other income was down 12 per cent Y-o-Y to ₹2,157 crore.

The private sector lender's net interest margin (NIM) declined 79 basis points (bps) Y-o-Y to 3.46 per cent, but increased 121 bps sequentially.