IndusInd Bank posted ₹533 crore Q4 profit, swinging from last year’s record loss.
Profit fell sharply sequentially, indicating continued near-term pressure.
Lower provisions and improved asset quality supported the turnaround, but growth remains weak
IndusInd Bank Posts ₹533 Cr Profit in Q4 after Year-Ago Record Loss, Sequential Decline Persists
The bank also announced a final dividend of ₹1.5 per share for the year ended March 2026. The record date for determining shareholder eligibility for the dividend has been set as June 26
IndusInd Bank
Summary
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IndusInd Bank on Friday, April 24, reported a standalone net profit of ₹533 crore for the January-March quarter. The bank swung back from a loss of ₹2,236 crore in the same period last year, when it had posted its biggest-ever quarterly loss due to mis-accounting of internal derivative trades. However, on a sequential basis, profit fell sharply by 67% from ₹1,612 crore recorded in the December quarter.
The bank also announced a final dividend of ₹1.5 per share for the year ended March 2026. The record date for determining shareholder eligibility for the dividend has been set as June 26.
Operating Performance Improves
The bank delivered a strong operating performance, with pre-provision operating profit coming in at ₹2,215 crore, compared to a loss of ₹472 crore in the year-ago period. Sequentially, operating profit fell marginally from ₹2,306 crore in the December quarter.
Provisions and contingencies declined 38.6% year-on-year and 29% from the previous quarter to ₹1,484 crore, reflecting improved risk management.
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Asset quality also showed signs of recovery. Gross bad loans as a percentage of total loans dropped to 3.43% at the end of March, down from 3.56% three months earlier.
Net interest income climbed 43% year-on-year to ₹4,371 crore.
CEO and MD Rajiv Anand said, "At IndusInd Bank, we are seeing improved growth momentum across businesses, supported by focused execution and strengthening fundamentals. In our microfinance portfolio, lower slippages during the quarter have contributed to better asset quality."
Loans, Deposits Still Under Pressure
Despite the return to profitability, the bank's loan and deposit growth continued to struggle. Loans declined 8.7% year-on-year during the fourth quarter — marking the fourth consecutive quarter of decline — while deposits fell 2.6%.
The bank has been under scrutiny since last year, when it disclosed a nearly ₹2,000-crore accounting hit for the year ended March 2025, stemming from the mis-accounting of internal derivative trades. The disclosure raised serious governance concerns and led to the resignations of former CEO Sumant Kathpalia and deputy chief Arun Khurana.
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