The bank’s net interest margin (NIM) was also reported at 3.32% for the second quarter of FY26, compared to 4.08% for the second quarter of FY25.
According to the bank’s press release, fees and other income for the quarter stood at Rs 1,651 crore, compared to Rs 2,185 crore in Q2FY25. The bank’s return on assets was 8.75% for the quarter, down from 9.58% in the same period last year, while the cost of funds was 5.43%, down from 5.54% in the corresponding quarter last year.
Operating expenses for Q2FY26 were reported at Rs 4,013 crore, slightly higher than Rs 3,932 crore in Q2FY25. The total expenditure, including interest and operating expenses, stood at Rs 11,212 crore, compared to Rs 11,271 crore in the corresponding period of the previous year. The bank’s operating profit before provisions (PPOP) fell to Rs 2,047 crore in Q2FY26, compared to Rs 3,600 crore in Q2FY25.
IndusInd Bank’s balance sheet stood at Rs 5,27,490 crore as of September 30, 2025, compared to Rs 5,43,407 crore a year earlier. Deposits stood at Rs 3,89,600 crore, compared to Rs 4,12,397 crore in the previous year.
CASA deposits stood at Rs 1,19,771 crore, with current account deposits of Rs 31,916 crore and savings account deposits of Rs 87,854 crore, constituting 31% of the total deposits. Advances as of the end of Q2FY26 stood at Rs 3,25,881 crore, down from Rs 3,57,159 crore in the year-ago period.Asset quality
Gross NPA ratio stood at 3.60% of gross advances as on September 30, 2025, slightly down from 3.64% as on June 30, 2025, while net NPA stood at 1.04%, an improvement from 1.12% in the previous quarter.
The Provision Coverage Ratio improved to 72%. Provisions and contingencies rose to Rs 2,631 crore in Q2FY26, from Rs 1,820 crore in Q2FY25.
Capital adequacy
The bank’s Total Capital Adequacy Ratio, according to Basel III standards and excluding half-yearly profits, stood at 17.10% as of September 30, 2025, compared to 16.51% a year earlier. Tier 1 CRAR stood at 15.88%, compared to 15.21% in the same period last year. Risk-weighted assets stood at Rs 3,98,256 crore, down from Rs 4,20,519 crore last year.
“During the second quarter of 2026, the Bank consolidated its balance sheet by letting go of wholesale deposits and being cautious on microfinance disbursements. Nevertheless, our core profit before provisions remained stable at Rs. 1,940 crores quarter-on-quarter. Our asset quality trends are stable across all core businesses, except microfinance, where industry faces cyclical pressures. The Bank also accelerated depreciation. such as increased provisions on microfinance as a prudent measure. While this has resulted in the Bank incurring a loss in the second quarter, we believe this strengthens the balance sheet and accelerates the normalization of underlying profitability,” said Rajiv Anand, MD and CEO, IndusInd Bank, while commenting on the results of the bank in the second quarter.
#IndusInd #Bank #results #Bank #incurs #loss #yearago #net #profit #NII #YoY